Renovation Costs

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

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  1. MorganHB

    MorganHB Well-Known Member

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    8th Dec, 2015
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    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.
     
    MorganHB, 25th Mar, 2016
    #1
  2. wylie

    wylie Moderator Staff Member

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    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.
     
    wylie, 25th Mar, 2016
    #2
  3. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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    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.
     
    BMT Tax Depreciation, 29th Mar, 2016
    #3
  4. Paul@PAS

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

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    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.
     
    Paul@PAS, 29th Mar, 2016
    #4
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