I have been told my property is to old to depreciate
We have found very few properties which are not worthwhile depreciating. Even if your property was built pre 15 September 1987 and no longer eligiable for Division 43 (Building Allowances) you will still be eligible for Division 40 (Plant and equipment) depreciation. In addition to this your property may have undergone refurbishment works more recently which will also attract both building allowances and plant and equipment depreciation.
My property has been refurbished can I depreciate these costs
Most older style properties will have had some sort of refurbishment work, whether a new kitchen or bathroom which will attract depreciation. Our Quantity Surveyor will be able to establish the cost of the works even if you dont have receipts to include within your depreciation schedule.
How do you estimate the costs for the depreciation schedule
Koste employs qualified Quantity Surveyors with years of industry experience needed to complete accurate depreciation schedules. The ATO have recognised that Quantity Surveyors are one of the few professionals to have the appropriate skills to calculate the cost of items for the purposes of depreciation in accordance with TR 97/25. We prepare depreciation schedules for all property types, estimating the historical construction costs using our extensive cost databases and inhouse resources.
Do I need a site inspection
Absolutly, there are products out on the market which offer a tick sheet for investors to complete the survey thereselves. By doing this you will be in effect self assessing the depreciation on the property, and will not have the skills needed to establish a accurate price for the assets.
Can I backdate my depreciation
You are entitiled to amend your tax return up to 2 years back with the help from your accountant although there are some exceptions. Koste are able to prepare your depreciation schedule which will include the historical depreciation figures to be included within your tax return.
I have a Investment Property Overseas can I claim depreciation
If you are an Australian tax payer you are entitled to depreciate overseas assets in the same way as you do in Australia. Please contact a member of our team to discuss how we could be of assistance.