Depreciation reports - Tax Shield

Hi everyone,

Just wondering what your thoughts are on Tax Shield over BMT etc for Depreciation?

I've got 3 properties to have reports done on. Ive been advised to go with Tax Shield as it is $275 per property and apparently the results are the SAME. However you have to follow their template yourself and no one comes to inspect the property. However BMT come and to the full inspection and report for $770.

Pretty big outlay for a report (If they do the same job):

3 x $275 = $825
3 x $770 = $2310

Just wondering if anyone has had experience with Tax Shield etc?

Thanks again for any input. J
If their not even going to inspect..... how do you know it'll give the same result?

Well that's my question... If anyone has had experience with them or both companies?

The template Tax shield gives you looks simple and if that's the only things BMT look at, its a big price tag for a report when you look over a larger portfolio of properties.

I still don't understand how things like Tax Shield are still going. The results they spit out depend entirely on the information you enter, so you could err either way i.e. you could sell yourself short, or talk things up. I guess it's your tax return, though, so any errors are on your head. It's also going to be impossible to get clarification on the results from Tax Shield - that's what I have heard, at least.

Of course, we have a barrow to push in encouraging inspections of eligible properties. And I personally think those inspections should be done by a quantity surveyor.

I would not recommend a client use a provider that estimates such a important report. You get what you pay for i suspect. They likely have you provide all the information and use that and rely on disclaimers and blame the client...However few people would possess that knowledge. It may be as effective as a DIY schedule.
The results are the same if the inputs are the same. Problem with Tax Shield is you're the one filling in the form. Are you a qualified quantity surveyor? If not best leave it up to the experts :)
You get what you pay for...

For the sake of $4-500 more I would hazard a guess and suggest you will pick that up easily plus a lot more in the first year alone providing the property meets the ATO's depreciation rule in relation to eligible construction completion date.

You're in business and need to conduct it like one.
The ATO states a Quantity Surveyor is a suitably qualified person to complete your Tax Depreciation claim to identify, measure and costs assets. How can this be done using a checklist and self assessment method?

You may pay a little more to get a inspection, however this is a 100% tax deductable fee. You will also have piece of mind that all assets have been picked up on the survey including any renovation work / improvements which may have been completed before your purchased the property.

My Advice always get a inspection!