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  1. #1
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,870

    Default Portable Rooms (Sleepout / Utility) - Depreciable

    "The Budget tax legislation also listed a number of buildings that continue to be depreciable at a rate of higher than zero per cent regardless of when acquired. These are carports hired out to householders, portable huts, cool-stores and freezing chambers, slaughterhouses on farms, fowl houses, plastic hothouses and PVC tunnel houses, glasshouses, structures affected by acid, milking sheds, roofed livestock yards, wintering barns and simple loading barns, and temporary structures."

    Is there enough loop holes here to drive a tenant through, sorry a truck.
    Is there an opening here to up yeilds with additional living space that is portable, plus you can now depreciate it, and you dont even need a permit for ????



  2. #2
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,305

    Default

    Can we now grow/house tenants in poly tunnels?! Sweet!

  3. #3
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Yes. but finding tenants wanting to live in portable structures,, poly tunnels, or slaughter houses may be difficult.

  4. #4
    Join Date
    Dec 2003
    Location
    Auckland, New Zealand
    Posts
    110

    Default

    Sarah and I bought a cabin hire (and sale) business just before Christmas last year called RoomMate Cabins.

    Rather than using your own or borrowed money to get a sleepout, then claim depreciation, you can rent one from $49.50pw. You can then claim the whole rental cost as a tax deduction and there is no potential for depreciation clawback, plus you can hand the cabin back if your tenants no longer require it.

    We thought it was a good option to provide flexibility for rental property owners and/or their tenants.
    Andrew King,
    Too many tenants in your property? Hire a sleepout and increase the rent
    Andrew King Property Management Services - NZ Property Investors' Federation

  5. #5
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,870

    Default

    Yeah I have seen these Cabin rentals, but that's $2,500 per year.
    Arent they mostly just little rooms rather than full sleepouts, its a bit of a gamble whether the rent will be greater than that.

    I am thinking of a more 2/3 bedroom sleep outs on wheels, 20 foot high barns that could house a small army.
    Last edited by Perry; 16-06-2010 at 08:55 PM.

  6. #6

    Default

    If they have an expected lifetime of less than 50 years then I expect you can depreciate them. Of course the big question is at what rate.
    Last edited by Perry; 16-06-2010 at 08:55 PM.

  7. #7
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,870

    Default

    Points taken.

    Therefore, possibly a good idea to have a diversified Trading Trust, that as well as doing flips and assignments.

    Also makes Portable Cabins, and rents them to my Rental Trust.

    The RT can then claim full depreciation as Andrew says, and probably as he is doing.

    The TT makes a profit of some sort, which is naturally taxed, but then the TT Profits eventually get set off against the RT loss's anyway.

    Its about this point that I get lost in my musings

  8. #8
    Join Date
    May 2008
    Location
    Manukau Auckland
    Posts
    1,049

    Default

    Quote Originally Posted by Bluekiwi View Post
    "The Budget tax legislation also listed a number of buildings that continue to be depreciable at a rate of higher than zero per cent regardless of when acquired. These are carports hired out to householders, portable huts, cool-stores and freezing chambers, slaughterhouses on farms, fowl houses, plastic hothouses and PVC tunnel houses, glasshouses, structures affected by acid, milking sheds, roofed livestock yards, wintering barns and simple loading barns, and temporary structures."

    Is there enough loop holes here to drive a tenant through, sorry a truck.
    Is there an opening here to up yeilds with additional living space that is portable, plus you can now depreciate it, and you dont even need a permit for ????

    Bluekiwi

    Here is a portable house idea I am toying with. Converted shipping container. But done nicely. You could bring in a crane truck and uplift it to another property if required.

    I am thinking of getting them fitted out in Taiwan where hourly labour is about $45 a day for a skilled carpenter. also materials such as bathroom fitting and wood is so much cheaper here in Taiwan.

    Here is a cool video of a great looking conversion.

    From: http://www.youtube.com/watch?v=MUWSuyAQO8E


    Shane
    Last edited by Shane D; 14-06-2010 at 07:13 PM. Reason: youtube video could not embed

  9. #9
    Join Date
    Jun 2004
    Posts
    10,367

    Default

    interesting - don't you have to have 2 doors between a toilet and food prep area (kitchen)?
    Last edited by Perry; 16-06-2010 at 08:57 PM.

  10. #10

    Default

    Quote Originally Posted by Wayne View Post
    interesting - don't you have to have 2 doors between a toilet and food prep area (kitchen)?
    Not any more. That rule went out years ago.


 

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