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How would I depreciate a new Oven & Bathroom in an IP?

Discussion in 'Accounting, Tax & Legal' started by Sk3tChY, 12th Jul, 2011.

  1. Sk3tChY

    Sk3tChY Well-Known Member

    4th Aug, 2007
    Sydney, NSW
    1. When do you have to depreciate an asset rather than simply claim it back as a deduction? Is it when the asset is valued over $300?

    2. Once I've established I'll need to depreciate an asset, which in this case is a $1,059.00 freestanding oven - What do I need to do?

    To my knowledge I need to determine whether I want to depreciate using the Prime Cost or Diminishing Value method, then need to determine the assets effective life and then create a depreciation schedule. If this is the case, how/where would I get the required forms/information to do so.

    3. I'm considering renovating the bathroom in my IP, how exactly do the deductions work on such a thing? Is the entire renovation simply depreciated as a whole, or do/can you individualize all the items and for example claim back all the fixtures/fittings under $300 (provided this is the limit) back immediately and then just depreciate the labour and things over $300.

    Naturally I'll be speaking with an accountant and getting them to handle most of this, but I like to have a good grasp of things myself so I have a somewhat decent understands of what's going on, or at least understand the basic concept.