Should I order depreciation report now?

Hi All

I just bought a property in Western Sydney. The house was built before 1987

- The property will be investment property from now to 12/2016

- In 2017 I intend to move in and it will become my principal place of resident

should I order depreciation report now and wait until I move in 2017?

How much does it cost for a depreciation report in Western Sydney area?

thank you very much!
regards

 

You wont be able to claim depreciation once you have.moved in so now would be better. Costs about $900

 

Shop around there are a few reputable ones that can do it for cheaper.

For existing houses over 30 years old a lot of depreciation companies recommend you send in photos to them and do a "Desktop" depreciation for half the price. From my/clients' experience we find a full onsite inspection/depreciation usually nets better results.

Too many depreciable items will be missed if you simply send them photos.

 

Also consider the costs v benefits if you will only be claiming it for 1 year

 

Some offer a guarantee of finding a certain amount of deductions (e.g. they will find double their fee in deductions in the first year or the report is free). If you are on a high tax rate this might make it worthwhile (remember the fee to obtain the report is also tax deductible). Best to give some of them a call, they should be able to give you an indication of whether they think it would be worthwhile or not. If the property has been recently renovated then there is a good chance it will.

 

We generally find that even claiming for just one year on any property will net a positive result. It might not be a massive return in some cases but you'll have more money than when you started. The easiest way to make an assessment is to get a provider to give a tailored estimate for your property. If you private message me a link to the listing along with anything you've added since purchase I should be able to give you an idea. Then it would be a matter of running the estimate by your tax agent to see what they think.

The timing is much of a muchness because the report will show all available deductions regardless. It won't be claimable for the period after moving in, but it will still be available for the time prior to that. However, doing it before the 2016 tax return is completed will be the most painless option.

A $900 report is the exception rather than the rule.

Bingo. A self-assessment is a sure way to shoot yourself in the foot. I've seen those checklists and they're extremely basic. Items will be missed and the ones that aren't missed will likely be undervalued.

99% of the time even an unrenovated property will give a positive result on first use of the report. We'll generally find a couple of thousand dollars in deductions in the first year on even the shabbiest of places. Combined with the deductible fee, for most taxpayers this is an instant positive result.

Our guarantee is that we'll double the fee in deductions in the first full financial year and the maths is simple. Fee (x) + double the fee (2x) claimed = 3x. Most taxpayers will get a third of their deductions back as a saving/refund: 3x/3 = x. You're at worst breaking even in that scenario and it's extremely rare that we merely double the fee.

Do seek advice from your tax agent in conjunction with an estimate, though.

 

I was pleasantly surprised with 6k+ deductions in the first year for a 30+ year old house in Logan with no recent renovations that I was aware of.

 

I bought a house built in 1966 worth 150k and did 3k worth of renovations. I managed to get 4k of deductions in Year 1 from a $500 depreciation report. So yes, get it done now.

 

Get one done, for sure.
It's surprising how much it can be on an older house.