New Depreciation report after Insurance incident

Discussion in 'Accounting & Tax' started by AlexABC, 4th Aug, 2021.

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  1. AlexABC

    AlexABC Active Member

    Joined:
    11th Feb, 2021
    Posts:
    30
    Location:
    NSW
    Hi All,
    I have had a water damage insurance inscident in my IP. Due to water damage intensive repairs were required due to mold growth. So they had to take the walls, bathroom, kitchen, floors, grind the timber studs,...etc.

    Repairs quotation per the builder is 150K's. Work is due to complete this month. Couple of items i paid out of pocket to upgrade (e.g. put Ceramic tiles instead of Vinyl, Paint ceilings,...etc).

    Given that I already have a depreciation report that I am using for the last 5 years. After the work is completed. should I request a new depreciation report and use it comes tax time?

    Please let me know your thoughts.

    Thanks
    Alex
     
    AlexABC, 4th Aug, 2021
    #1
  2. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,504
    Location:
    Sydney
    I would make sure the QS adviser advises on this and updates the report. There could be elements that need scrapping and they may need to consider the work being performed and even attend onsite in some cases.
     
    Paul@PAS, 4th Aug, 2021
    #2