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Renovation Costs

Discussion in 'Accounting & Tax' started by MorganHB, 25th Mar, 2016.

  1. MorganHB

    MorganHB New Member

    Joined:
    8th Dec, 2015
    Posts:
    3
    Location:
    Sydney
    Hi guys, first post of PC.
    I've been incredibly lazy with my reconciliation for properties that I've renovated...
    Anyway, I want to know how to best present the use of builders costs, plumbers, electricians to my accountant?
    My builder cost me say $25K and then each tradie afterwards was less.
    Do I include this on the P&L or income/expenses sheet? Or can I put this in a separate category all together? Like capital work, so it doesn't appear like I've racked a massive first year loss.
    Any advise would be awesome!
    Thanks,
    Morgan.
     
  2. wylie

    wylie Moderator Staff Member

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    18th Jun, 2015
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    Location:
    Brisbane
    I send it all to my accountant and let him place it into the different areas it belongs, i.e. Low value pool, repair etc.
     
  3. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    102
    Location:
    Australia
    On the face of it, a depreciation schedule seems ideal! It's a single document that would make things extremely simple for your tax agent and (as you suspect with your comment about capital works) the majority of renovation work has to be depreciated anyway.
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
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    2,386
    Location:
    Sydney
    I would take the information to a quantity surveyor and obtain a schedule. They may even find some of the existing building works prior to renovation has some value also.