One or two depreciation report for house with attached granny flat?

Discussion in 'Granny Flats' started by property_geek, 11th Apr, 2018.

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  1. property_geek

    property_geek Well-Known Member

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    Hi,

    I have a newly constructed house that has attached 1 bedroom granny flat in NSW.

    Do I require two separate depreciation reports? One each for house and granny?

    Or just one depreciation report can cover both houses?

    My initial thought is, it should be one report only.

    If the addresses of both houses are 1A, John road, Smith Park and 1B John road, Smith Park. Then on depreciation schedule can it be written as 1 John road, Smith Park (if only one report for both houses)?

    Both houses are on one title (under same roof as they are attached). Initial address of land was 1 John road, Smith Park.

    Please advise.

    note: fake address is used for example purpose only.
     
    property_geek, 11th Apr, 2018
    #1
  2. Depreciator

    Depreciator Well-Known Member

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    If it's attached and under the same roofline, one Dep Schedule would probably be fine. The document will have two ovens, cooktops etc but that's not unusual.
    Scott
     
    Depreciator, 11th Apr, 2018
    #2
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  3. geoffw

    geoffw Moderator Staff Member

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    I assume that they are both tenanted? If you were living in one, you would definitely require two schedules, as only the investment property has depreciable items. It’s possible that if you later sold them, if the purchaser was going to live in one and rent out the other, they may appreciate getting separate schedules from you (though perhaps the law has changed on “inheriting” depreciation?)
     
    geoffw, 11th Apr, 2018
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  4. neK

    neK Well-Known Member

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    I have two
     
    neK, 11th Apr, 2018
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  5. Paul@PAS

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

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    I have many clients with two schedules (50% each) for the same single dwelling. Can assist with getting items to accelerated rate pool etc...and two for a GF although most GFs are largely Div 43 with trivial kitchen appliances.
     
    Paul@PAS, 13th Apr, 2018
    #5