These are getting talked about more and more.
The term 'scrapping schedule' is not an ATO term. It's been made up by a QS - not a bad name, I have to admit.
The typical scenario is:
You buy an IP and do a reno straightaway. You toss out the carpet, curtains/blinds, stove etc and claim the value of them as an instant deduction.
I have always told people that it is prudent to rent the place out and earn some income from the Assets for a while before trying that one on.
I've spoken to the ATO about this a few times and they have always been a bit non commital. So I got a Private Ruling.
Now a Private Ruling only applies to one particular situation. But it demonstrates clearly the line the ATO takes with this. The guy who worked on my Private Ruling would have looked for all relevant rulings (Private and Public) as his starting point. And now my Ruling is there.
I made the scenario in my Private Ruling fairly broad.
The ATO confirmed what I thought. And they took an interest in the notion of these 'scrapping schedules' being marketed to investors.
Scott
The term 'scrapping schedule' is not an ATO term. It's been made up by a QS - not a bad name, I have to admit.
The typical scenario is:
You buy an IP and do a reno straightaway. You toss out the carpet, curtains/blinds, stove etc and claim the value of them as an instant deduction.
I have always told people that it is prudent to rent the place out and earn some income from the Assets for a while before trying that one on.
I've spoken to the ATO about this a few times and they have always been a bit non commital. So I got a Private Ruling.
Now a Private Ruling only applies to one particular situation. But it demonstrates clearly the line the ATO takes with this. The guy who worked on my Private Ruling would have looked for all relevant rulings (Private and Public) as his starting point. And now my Ruling is there.
I made the scenario in my Private Ruling fairly broad.
The ATO confirmed what I thought. And they took an interest in the notion of these 'scrapping schedules' being marketed to investors.
Scott