Can you send me your Depreciation Schedule?

[Rolf Latham]

It always surprises me that someone is fine with spending $700 000 on the bricks and mortar but is averse to spending 0.1% of that on what is potentially hundreds of thousands of dollars in deductions and forty years of legal protection.

doesnt surprise me at all.............. there will always be those who see value in saving some money, I too like to save a dollar on a like for like product or service but I often find people try and compare a carrot and an orange because they are the same colour...........

There are some circumstances where people want to learn things, a good example is self conveyance, I get that, I understand it......... but looking from outside the fish bowl, and having enough data to hand, in my view the risk of stuff going bad means my clients will get an earful............... since a real adviser stands their ground.

ta
rolf

 

[BMT Tax Depreciation]

doesnt surprise me at all.............. there will always be those who see value in saving some money, I too like to save a dollar on a like for like product or service but I often find people try and compare a carrot and an orange because they are the same colour...........

I understand what you mean but the issue is that people think they're saving money by skimping out on a depreciation schedule in the first place. It will only be a saving until they use the schedule for the first time and get the money back in their pocket and then some.

Any worthwhile depreciation schedule will only save the investor money.

 

[coastymike]

The schedule is a deduction as well so for a 600 schedule at a rate of 30% the after tax cost is only 420. Going to spend a lot more time and effort arguing that with the ATO with a DIY schedule. Capital works will just be denied and then up to you to fight it in court. Good luck. Watch tens of thousands of dollars then go out the window. Plain foolishness.

Wonder how much I would have saved if I studied and did my own vasectomy. Hmmm could have then related a true story in the ladybot thread

 

[Scott No Mates]

Wonder how much I would have saved if I studied and did my own vasectomy. Hmmm could have then related a true story in the ladyboy thread

Youv would have ballsed it up

 

[fullylucky]

I finished. Only took 1.5 hours.

Now I can use it for the rest of my life and also help others.

If anyone wants a "report" done post here your purchase price. and also how much of the stuff inside your property will break in the first year (in dollars). e.g. the data above is for a property purchased for $600k

Takes 3 seconds to generate.

the R^2 is so close to 1 it's not funny; meaning a near perfect trend. Turns out it's logarithmic.

 

[fullylucky]

Why don't you spend $300 and get one done?

I would only they quoted me at over $800.

 

[fullylucky]

I like your nickname, you better be fullylucky, because if you do your tax return with a home-made depreciation schedule you're going to have big problems explaining it if the ATO asks for documentation or audits you

They won't audit you if you're lucky though

I trust myself more than other people's calculations.

Looking at the examples from BMT, there is a ton of mistakes...

on the first page (not counting the cover page) of the example pdf. They mention TR2009/4? however according to ATO website: http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20094/NAT/ATO/00001

Taxation Ruling TR 2009/4 was withdrawn on 1 July 2010. and replaced. 5 TIMES lol

That means they haven't even bothered to look at it in over 4 years... yeah money well spent. nice work. on the "detail" put in. I probably have more attention to detail than these "specialists"...

"Tax depreciation experts
BMT Tax Depreciation utilise the latest Australian Taxation Office legislation when compiling our depreciation schedules. " from BMT website: http://www.bmtqs.com.au/about-us

In their graph as well they mixed up their trend order. In the first graph it's max then min however in the second graph they have min then max.

You guys don't know Excel. just takes a fair bit of time to build the first time but once you have the spreadsheet you just need to update 1 cell value and everything cascades through. So it literally takes a few seconds to get a "new report" done up.

 

[fullylucky]

Good to see you are putting in the work researching everything. I would vote with the crowd and still get it done professionally and also sponsor Depreciator.

Regardless, lets explore your statement quoted. You go to lengths to differentiate between taxable income deductible and 'tax deductible'. Aren't they both the same. In either case the dollars spent reduces your taxable income which in turn reduces your marginal tax.

Cheers

I simply mean i don't like it when people say oh don't worry it's tax deductible as if it's free.

It just offsets your income. say it costs $1000. and your marginal tax rate is 37%. You still need to pay $630. Can that $630 be spent else where more worth while? That's Nandos x 42 times?

 

[fullylucky]

Hi, fullylucky.

I can assure you that this most definitely was not the case! If anything, we pride ourselves in taking the time to explain everything so that you know what's going on.

We've never quoted $615 for anything so I'm not sure where that fee came from. Possibly it's a fee offered by another provider. You will find a whole range of fees in the marketplace and there are many reasons why $300 won't get you the same as paying double or more. Don't forget: this is part of your investment.

Price discrimination isn't a bad thing. There is no shame in practicing price discrimination. Only smart and successful businesses do that.
Read up on 1st, 2nd and 3rd degree price discrimination:
http://en.wikipedia.org/wiki/Price_discrimination

That's why some industries do not post prices. and ask people to get "quotes". That reduces competition and maximums your economic profit. It's the smart thing to do with a business. (Perfect information makes the market more competitively = zero economic profit.)

 

[fullylucky]

a.) Are they going to inspect your house to make sure they've got everything?

b.) Are they experts at knowing the maximum values the ATO will allow?

c.) How much will they charge you for all the extra work they need to do?

For close to $1000 i'd hope you would come out and inspect the house. Building and pest inspections cost $200 and they come out so I don't see why depreciators wouldn't come out.

I question what they do after and the value add....

If ATO can work out what the maximum value is allowed then others should be able to know their methodology and replicate their calculations. So I don't see why they (ATO) wouldn't make it available to others.

extra work they need to do? value add?

I think you guys are just marketing yourself as a deluxe service. kind of like how when apple started with ipods. You are differentiating yourself from other mp3s. Ohhh no it's not an MP3. it's and ipod! Thus you are pulling away from perfect competition (selling a standard good/service provided by many suppliers) to maximize your economic profit.

 

[fullylucky]

It always surprises me that someone is fine with spending $700 000 on the bricks and mortar but is averse to spending 0.1% of that on what is potentially hundreds of thousands of dollars in deductions and forty years of legal protection.

First mistake in economics, always deal with absolute dollar values and not %s.

If you were gonna walk extra 10 minutes to save $40 on buying a few t shirts.

Then just because you bought a car for $80k you shouldn't laugh at 0.5% ($400.) oh but it's only half a percent (0.5%). You already spent $80k why not just half a percent more?

Always, compare in absolute dollar terms. I'm too tired to explain to you basic business and economics. I'm gonna sleep.

 

[The Fence]

I finished. Only took 1.5 hours.

Now I can use it for the rest of my life and also help others.

If anyone wants a "report" done post here your purchase price. and also how much of the stuff inside your property will break in the first year (in dollars). e.g. the data above is for a property purchased for $600k

Takes 3 seconds to generate.

the R^2 is so close to 1 it's not funny; meaning a near perfect trend. Turns out it's logarithmic.

This oughta be good entertainment.

 

[Television]

There's still the issue of whether or not the ATO ever comes knocking?

How did you value the construction cost? What are your qualifications to do so?

 

[Mr. Fabulous]

I trust myself more than other people's calculations.

Looking at the examples from BMT, there is a ton of mistakes...

on the first page (not counting the cover page) of the example pdf. They mention TR2009/4? however according to ATO website: http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20094/NAT/ATO/00001

Taxation Ruling TR 2009/4 was withdrawn on 1 July 2010. and replaced. 5 TIMES lol

That means they haven't even bothered to look at it in over 4 years... yeah money well spent. nice work. on the "detail" put in. I probably have more attention to detail than these "specialists"...

"Tax depreciation experts
BMT Tax Depreciation utilise the latest Australian Taxation Office legislation when compiling our depreciation schedules. " from BMT website: http://www.bmtqs.com.au/about-us

In their graph as well they mixed up their trend order. In the first graph it's max then min however in the second graph they have min then max.

You guys don't know Excel. just takes a fair bit of time to build the first time but once you have the spreadsheet you just need to update 1 cell value and everything cascades through. So it literally takes a few seconds to get a "new report" done up.

 

[skater]

Well, I've been known to like to save a dollar or two on purchases. But seriously! This is just foolhardy!

I would not like to be you, should the ATO come a knocking.

 

[wylie]

I cannot believe after all the advice given, that the OP has decided to do this himself, and worse, to bag out the company like that.

There have been highly qualified professionals who know what they are talking about advising against the DIY method, which is illegal and could/will cause you great financial pain. Why not listen, pay your fee for the professional job you require in order to claim, and stop this foolhardy attempt to save a few bucks?

To the OP, you do realise the ATO reads this forum? Quick, get out of your jammies, because I think somebody from the ATO is knocking at your door right now .

 

[speary]

I hope you are doing your own tax return because if I was your accountant, there is no way that would be going in your tax return.

 

[coastymike]

You do realise by selling a depreciation schedule and not being a registered tax agent that you are committing a criminal offense ?

 

[skater]

I hope you are doing your own tax return because if I was your accountant, there is no way that would be going in your tax return.

Of course he's doing his own tax. He's far too cheap to pay a professional!

 

[Hooray]

Accountants don't know much and overcharge anyway, right, Fullylucky? You can do a spreadsheet that does it all.