What is Strata depreciation report?
A strata depreciation report helps strata corporations plan for the repair, replacement and renewal of common property and assets, especially those that require considerable outlay of money, such as roofs, windows, elevators, roads or utilities.
When did depreciation reports become mandatory in BC?
December 13, 2011
Current Legislation As of December 13, 2011, new regulations were enacted under the Strata Property Act. A Depreciation Report, elsewhere known as a Reserve Fund Study, is now a mandatory function of Strata Corporations in the Province of British Columbia.
What is a depreciation report for a condo?
A depreciation report is a key management tool for stratas. It helps the owners in a strata corporation to plan and pay for the repair, replacement and renewal of common property and assets such as a roof, windows, elevators, roads, utilities and other items.
Should I get a depreciation report?
The depreciation report for investment property is useful because you as an investor can maximise the return from your property each financial year. The most sensible method to approach this is to hire professionals who will take into consideration each cost from the settlement date.
How often does a strata need a depreciation report?
every three years
Depreciation reports must be renewed every three years. Strata corporations may waive the requirement to obtain a depreciation report, or defer a renewal, by passing an annual 3/4 vote.
How often should a strata get a depreciation report?
Strata corporations must obtain depreciation reports no later than 6 months after their second AGM (Annual General Meeting). Depreciation reports must be renewed every three years. Strata corporations may waive the requirement to obtain a depreciation report, or defer a renewal, by passing an annual 3/4 vote.
How much is a depreciation report?
The fee you’ll pay for a depreciation schedule will vary. For example, you may pay anywhere between $275 and $800 for the report. This is a fairly standard price for an established residential home.
What does a depreciation report cost?
The typical fees for a Depreciation Report will range from a few thousand dollars for the most basic small Strata Corporation, to well over ten thousand dollars for a large complex Strata Corporation.
Who prepares depreciation schedule?
A depreciation schedule can be prepared by a dedicated tax depreciation company who use qualified quantity surveyors to complete the report. By using a company that works directly with ATO you can ensure all items are properly listed in the schedule to make it simple and concise for your tax return.
What should I look for in a strata report?
Your report should include detail around:
- The financial status of the scheme;
- Pending or past building works;
- The cost of current levies;
- The likelihood of special levies;
- A 10-year budget plan; and.
- All expenses for the past two years.
Is it worth getting a depreciation schedule for an old house?
So as you can see you can claim depreciation on older properties and however it is limited in what you can claim because if your property is too old you’re not going to be able to claim on the construction of the building any more. But it often still is worthwhile getting a depreciation schedule done.
How long does a depreciation report take?
Your depreciation schedule will take approximately 2-3 weeks to complete, as long as the quantity surveyor can inspect your property without delay.
Can you do your own depreciation schedule?
Yes, you can. Your accountant can amend your previous tax returns up to two years back. There are some exceptions so please contact your tax agent or the ATO for clarification. Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation.
How do I get a strata report?
To get started on your DIY Strata Report, call the Strata office (or person who manages the strata records) and book around 3 hours for a Strata Inspection Report (also called a strata search). You may need longer if there are a lot of records!
Why is a strata report important?
At best, a strata report can reassure you that the scheme you’re buying into is a nice place to live with well maintained amenities. At worst, it may uncover fiscal mismanagement, disputes between owners, high levies or unresolved legal issues.