Is it bad idea to get depreciation report before settlement date?

[m2014]

Hi, if I get depreciation report done before settlement date, can I still claim the cost of getting the report? or should I get the report after settlement instead?

 

[depreciator]

Yep, you can still claim the cost.
I reckon the best time to do it is when the access is easy - tenants can slow things down sometime.
If you need to do some stuff to the property later, it can always be added to the Dep schedule.

Scott

 

[Paul@PFI]

This is an often ignored issue in tax.. Yes you can get it early But it doesn't increase deductions. Timing of deductions Is based on other issues.

 

[m2014]

Thank you Scott and Paul for the information.

I think I posted an incorrect question.

I think the correct question should be:
Can I claim the cost of getting depreciation schedule as a cost of managing tax affairs if the depreciation schedule report is done before the settlement date?

 

[Peter_Tersteeg]

The biggest hassle can sometimes be negotiating access with the vendor. Beyond that there's no real issues with it.

We usually simply line up the inspection a day or two after the actual settlement.

 

[Jamie M]

We usually simply line up the inspection a day or two after the actual settlement.

Same - much easier to arrange.

Unless you've got tenants moving in on the day.

Cheers

Jamie

 

[depreciator]

M2014, yes I believe you can. Once you exchange contracts on a property and pay a deposit, it's sort of yours - that's why people suggest buyers get insurance in place upon settlement.
NB. I'm not an accountant.

 

[BMT Tax Depreciation]

Thank you Scott and Paul for the information.

I think I posted an incorrect question.

I think the correct question should be:
Can I claim the cost of getting depreciation schedule as a cost of managing tax affairs if the depreciation schedule report is done before the settlement date?

Yes. The cost of getting a depreciation schedule done is always claimable as an expense incurred in doing your taxes, regardless of when it is paid. The only condition is that the fee is only claimable in the year in which it is paid.

 

[danwatto]

It's not a bad idea, it's actually a good idea in my opinion.

We get ours as soon as unconditional so that we can vary our PAYG withholding more accurately.

ATO + employers payroll takes about 2 months from when we submit until it takes effect, so it pays to get it done ASAP.

If you're just guessing on the depreciation figure, it means you have to make up for it later. There is enough guessing as it is when it comes to the other figures and projections. Doing the PAYG variation with exact figures at least for depreciation is much better.