should I get a depreciation for a 1960's strata unit in original condition?

Hi i just bought an old strata unit, I think it was built around 1960's. It doesn't appear there was any renovation done. It's currently tenanted. I plan to renovate in future when the tenants move out in about 1 year time. I would like to get some advice as to whether I should organize for a depreciation schedule done or wait until after renovation. Thanks

 

Sure. Why not?

 

Thanks. That's what I thought, for example, my understanding is that you can claim carpet for 5 years, which means all items in the unit can no longer be claimed. But I read somewhere that says you can still claim on older unit even there is no renovation.

 

When you buy a place the fixtures and fittings have some value in them, even if not new, so there is still some to claim.

 

That makes sense! Thanks!

 

speak to one of the depreciation companies, they'll give you an estimate of returns

 

I think some of the depreciation companies give a guarantee to not charge if there report doesn't generate the tax benefits.

Still hard to see value but you never know.

I have used @BMT Tax Depreciation and they were good.

 

I am wondering whether ATO allows an item to be further claimed say carpet if it is 50 years old?

 

Yes, but it won't be worth much

 

Hell yeah!

 

Ask @Depreciator - his team is very good

 

Yes I've used his team heaps, for old properties too. It will be worth it, just for the fixtures. They also do free updates to the reports, so as you change, hot water, stoves, a/c etc you just send it through and they update it.

 

Terry is correct. When you buy even an old property, the carpet, appliances, HWS, curtains/blinds etc have a value. You might as well claim the depreciation on them.
If you toss those items out before you do a tax return, the Dep Schedule will have a value for each item so you can claim the disposal/'scrapping' value.
Send me some photos and I'll tell you how much depreciation might be in the flat. We do this several times a day for people, so it's not a big deal.
[email protected]

 

I'm not sure about before/after renovation, but just to share my recent depreciation experience on a 1960s studio unit, about 35 m2, bought for 150K last year. Original condition throughout, quite shabby (did come with old-ish microwave and bar fridge). I've only recently had a depreciation report done because I originally didn't think it would be worth it. Total deprecation came to a bit over 16K (Y1 $3320, Y2 $2266, Y3 $1727, Y4 $1183...). I was amazed at the dollar values that were attributed to various items in the unit, but I guess the depreciators know what they can get away with.

 

Compared to new or new-ish carpet, that's right. But people are often surprised at the value that can be put on that ratty old carpet. See Michael's post directly above.

 

Thanks

 

Thank you. I will try to organise some photos and send to you.

 

Hi, Im in a similar block and age.

We recently installed or replaced items in our building area, could that be claimed in depreciation?

Items are fire door replacements and hoses...

Thanks