Tax consideration before Demolition of an investment property

Hi All
I am currently in the process of 3 townhouse development on a regional area town. Got approvals and CC . I am currently organizing for the demolition and I remember that we can claim some portions as tax deductible (read in one of the article).
What actions should I need to take before I do the demolition?
Do I need to organise a depreciation schedule? If yes, can you please recommend someone.

Regards
Velli

 

Try @Depreciator - they'll help.

What is the effect of claiming the write iff amount if you later sell the townhouses? Does the depreciation need to be added back? Or is it too hard to trace if there's a cancellation of the title and strata subdivision?

 

Get a QS now - it is easier.

And with regards to tax I think you are better off claiming the depreciation entitlements now.

 

Hi Scott and Ross. thanks for the clarification. will try to get in touch with @Depreciator

 

It is good to think about this stuff before you do anything - a lot of people only think later.
If you are demolishing a rental property, there is scope to claim the value of some of the stuff that will end up in a skip.
If the property was built post September 87, or if it has renovations done post 87, there will be Capital Works (building stuff) disposed of that you can claim.
Regardless of the age of the property, there will be Assets (appliances, carpet etc) that you can claim the disposal value of. To claim this, though, you need to have been renting out the property before you throw the Assets out.
So it gets down to the age of the property and whether you have been renting it out.
Scott

 

Hi Scott

What if we have had depreciation schedule prepared a year before demolition, the building has been built Pre September 87 though..

 

If the property has a Dep Schedule, everything your accountant needs to know about claiming the disposal value of the Assets will be in that Dep Schedule.

 

If the accountant knows their stuff