Join Australia's most dynamic and respected property investment community

Tax/accountant question regarding deprecation please

Discussion in 'Property Experts' started by staceyo, 25th Sep, 2016.

  1. staceyo

    staceyo New Member

    Joined:
    16th Sep, 2016
    Posts:
    1
    Location:
    brsibane
    Hi
    Love any feedback, having not made the most effective investments decisions to date. I am anticipating getting a large tax bill. My question is:

    -Is it worth getting depreciation schedules on my properties even though 2 are quite old
    -If I do can I back date claims in this years tax returns.

    I really didn't think it was worth it but now I'm wondering if it might be worth looking at considering the circumstances :-(

    Thanks in advance
    Stacey
     
  2. Blacky

    Blacky Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    1,103
    Location:
    Bali
    Yes
    You would need to lodge a correction. Speak to your accountant.

    Blacky
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,959
    Location:
    Sydney
    It might be worth doing but you cant claim last years in this years return - you will need to amend last years.

    I suggest you call bmt or depreciator and ask if they think it worthwhile.
     
    staceyo likes this.
  4. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    721
    Location:
    Sydney
    Stacey, it will depend in part on how long you have owned the properties. If they are old and you have owned them for some years, there may not be much depreciation in them.
    As Terry said, to capture the 'lost' depreciation, you need to amend the tax returns for previous years. That will only be worth doing if there is a decent amount to claim.
    Scott
     
    staceyo and Terry_w like this.
  5. Peter P

    Peter P Well-Known Member

    Joined:
    17th Apr, 2016
    Posts:
    46
    Location:
    NSW
    @Depreciator
    A property is owned as joint tenants. I heard about splitting the depreciation such that each owner has their own depreciation report. This allows certain items to fall under a smaller threshold value which then can be depreciated more rapid. Could you clarify this.
     
    Terry_w likes this.
  6. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    721
    Location:
    Sydney
    Yep, that's how it works. We do split Schedules all the time.
    So if, say, a $500 oven is owned 50/50 by two people they each own a $250 oven and can write it off immediately.
    Two points:
    1. You need to know the ownership split - it's not always 50/50.
    2. If you use different accountants, you need to tell your accountant the split has already been done so they don't split it again.
    Scott
     
    Terry_w and Peter P like this.