Depreciation schedule or Specification list sufficient?
- Thread starter Rooster
- Start date
A depreciation schedule will specify the %'s of depn on each or grouped items and therefore the amount claimable on your tax return.
I doubt the builder's spec list will do the same.
I doubt the builder's spec list will do the same.
Thanks Prop,
Obviously with the builders spec my accountant would then need to do the workings on %'s of depreciation.
I'm curious as to whether I would miss any deductions because of this method and therefore the depreciation schedule might be more detailed?
Cheers
Rooster
My own personal accountant always gets a QS to do the schedule. But in your position I'd ask a QS and your accountant what their views were and make your own decision from there.
Depreciation schedule can not be done by you or your builder....a tax accountant and the ATO won't accept it...it must be organised and done by a registed " tax accoutant"...note NOT all tax accoutant does depreciation schedule- i found out the hard way a few years back
Regards
Michael
Depreciation schedule can not be done by you or your builder....a tax accountant and the ATO won't accept it...it must be organised and done by a registed " tax accoutant"...note NOT all tax accoutant does depreciation schedule- i found out the hard way a few years back
Regards
Michael
Thanks Mick,
I wasn't suggesting that either myself or the builder would complete a depreciation schedule.
Iwas comparing my options of either:
a) Having my accountant go through the specification list in order to calculate my depreciation.
or
b) Organise a depreciation schedule be completed on my behalf by someone like Depreciator.
I'm not sure whether a depreciation schedule would detail more deductions due to the extensive nature of the report, or whether an accountant going through the spec list would suffice.
Cheers
Rooster
I have seen the occasional list of items and costs provided by the builder who was trying to help the client out in circumstances such as you describe.
Generally the builder doesn't know what to include in the list so it's not everything that is depreciable.
I've never met a builder who really wants to show you too much breakup of their tender price either.
In theory if you get the cost of every depreciable item from the builder you may be ok. But more often than not the accountant will advise the client to have a depreciation schedule prepared by another party.
Hope this helps.
Cheers
Generally the builder doesn't know what to include in the list so it's not everything that is depreciable.
I've never met a builder who really wants to show you too much breakup of their tender price either.
In theory if you get the cost of every depreciable item from the builder you may be ok. But more often than not the accountant will advise the client to have a depreciation schedule prepared by another party.
Hope this helps.
Cheers
Hi Neil,
That's precisely the information I was after. Appreciate you taking the time to reply.
I notice you're in Rockhampton. By any chance do you service the Gladstone region as part of your business?
Cheers
Hi Rooster
Yes I do. I have sent you a PM but if you don't get it just goto my website.
Cheers
Yes I do. I have sent you a PM but if you don't get it just goto my website.
Cheers
Also, you don't really know what the builder has included in his values. For example he may only state the supply cost of an oven, but you can also include the installation and a portion of other costs as well.
Whilst I am a QS so am obviously biased towards our industry, other people will also tell you that QS's are specifically qualified to prepare depreciation schedules whereas I've yet to find an accountant who can adequately prepare a depreciation schedule. They all should be able to work out the depreciation rates but how are they qualified to determine construction cost. Typically the 'not so good' accountants may attempt to do it themselves, but the good ones normally suggest you speak to an expert (QS).
Also, make sure that your QS is a registered Tax Agent as it is illegal to prepare depreciation schedules without it anymore. You can confirm if they really are at www.tpb.gov.au
Good luck!
Whilst I am a QS so am obviously biased towards our industry, other people will also tell you that QS's are specifically qualified to prepare depreciation schedules whereas I've yet to find an accountant who can adequately prepare a depreciation schedule. They all should be able to work out the depreciation rates but how are they qualified to determine construction cost. Typically the 'not so good' accountants may attempt to do it themselves, but the good ones normally suggest you speak to an expert (QS).
Also, make sure that your QS is a registered Tax Agent as it is illegal to prepare depreciation schedules without it anymore. You can confirm if they really are at www.tpb.gov.au
Good luck!