My understanding is that the cost of a car to visit a property when it is being renovated is applied at the ATO rate plus tolls and added to the cost base. However, my accountant advises that this can be claimed in the FY in which the journeys were made, in this case FY14. I cannot find an ATO reference to this. Advice would be valued.
The accountant also said that the unfinished property can be depreciated for items that have been completed or paid. I have other advice that this is so, but it seems messy. I'd rather use lockup - mid-August - as the date to start a QS and claim more in FY15. One reason is that evidencing what has and has not been done as of 30 June could be problematic. Certainly a few dollars was spent on invoices, but completed? Much was not. There are some photos, nit not with a view for QS for FY14.
Another aspect is that the impact of depreciation on FY14 is likely to be small, and once started applying depreciation will reduce the cost base, thus making more tax on sale.
Should I claim depreciation for FY14? TIA.
The accountant also said that the unfinished property can be depreciated for items that have been completed or paid. I have other advice that this is so, but it seems messy. I'd rather use lockup - mid-August - as the date to start a QS and claim more in FY15. One reason is that evidencing what has and has not been done as of 30 June could be problematic. Certainly a few dollars was spent on invoices, but completed? Much was not. There are some photos, nit not with a view for QS for FY14.
Another aspect is that the impact of depreciation on FY14 is likely to be small, and once started applying depreciation will reduce the cost base, thus making more tax on sale.
Should I claim depreciation for FY14? TIA.