Works Done On Property During Settlement

Hey all,

Bought a property wherein approx. $3,000 worth of works was done between purchase date (March) to settlement date (May).
These works were done as part of 2 clauses put into the contract that the vendor had to do before settlement, and invoices were provided.
They were:

• To repair a known broken pipe = $2,000
• To remove an exposed asbestos eave = $1,000

My queries are:

1. I take it these works are either initial repairs or capital works deduction (similar in how they are treated taxwise anyway)?
2. Can I claim these deductions with the 2.5% per year rate (and without a depreciation report) given I know the cost and date of them?

Thank you,
gty12

 

Let the QS know and include it for 2.5% building allowance.

 

That was very quick Ross.
Righto, but I would need a really need a report? Can I not to it myself?

 

Who incurred the expenses? Prob not deductible by the purchaser but can be deprecated as Ross suggests

 

You dont "need" a QS report. The write off does not commence from the date you paid for it but from the date the premises are first used to produce your rental income. There may be more deductions available if a QS report was obtained. Most people lack any skills as indentifying more recent works and certainly cant assess what they would have cost when installed. That why a QS report is wise. Your additions woul be included in that report.

 

I think as Paul suggests above, the point Ross was probably making was that you're probably going to want a depreciation schedule anyway (for other claimable works), so you may as well just include them in that rather than keep them separate.