Extending QS report

Discussion in 'Accounting & Tax' started by qak, 26th May, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,678
    Location:
    Sydney
    I have a depreciation/building allowance report which had about 10 years worth of "depreciation" calcs in it - up to 30/6/2019.

    I'm quite capable of calculating the remaining depreciation/allowances on the same basis (down to $Nil), is it OK to do this? There haven't been any additions or removals.
     
    qak, 26th May, 2020
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,547
    Location:
    Sydney
    I dont quite follow. The report may be now invalid and not eligible for Div 40 etc.
     
    Paul@PAS, 26th May, 2020
    #2
    Terry_w likes this.
  3. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,678
    Location:
    Sydney
    Why would it be invalid?

    ETA: I thought the QS provides the estimate of construction costs, so the deductible amounts should just follow on?
     
    qak, 26th May, 2020
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,547
    Location:
    Sydney
    Depends if the property has been continually rented since acquisition or affected by any period of non continual use after May 2017 and especially in the period between that date and 30 June 2017 as well. A change in any ownership % could also render it a concern.

    Old QS reports should not be accepted as reflecting deductions in all cases.

    Div 40 is being phased out as a deduction.
     
    Paul@PAS, 26th May, 2020
    #4
  5. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,678
    Location:
    Sydney
    Property has been continually rented or available for rent (yes there were some minor periods of vacancy) since it was acquired. No changes in ownership.
     
    qak, 26th May, 2020
    #5
Property Tax Specialists – Enquire Today

Price Accounting provide investor + developer tax services world and Australia wide for your property and all tax issues. Contact Paul@PFI below for our new client pack and quoted pricing + client portal access. Trusts, Co and SMSF are our specialty.