Depreciation Schedule - TaxShield
- Thread starter Teshy
- Start date
Ahh this old chestnut.
Taxshield proudly displaying the AIQS logo on their webpage.
The AIQS have out and out stated they do not support the practice of having TDS prepared without a site inspection.
So what does the AIQS do as a regulator? Don't ask me I just pay my membership...........
You get what you pay for folks.
Use a firm who send a QS to the house.
Taxshield proudly displaying the AIQS logo on their webpage.
The AIQS have out and out stated they do not support the practice of having TDS prepared without a site inspection.
So what does the AIQS do as a regulator? Don't ask me I just pay my membership...........
You get what you pay for folks.
Use a firm who send a QS to the house.
Depreciator (www.depreciator.com.au) who is a forum member should be able to help you out. I believe he gives discounts to Somersoft members. I'm not 100% sure if he does Melbourne.
deppro? http://www.deppro.com.au/
Ring them both Teshy, Ask BMT why you should use them.
If the actual costs are known, the ATO want them used. They are very clear about this. If costs are not known, it is acceptable for a qualified person to estimate them. We always look for the most sensible way to tackle a job.
Scott
depreciator said:
Totally agree with Scott. If for instance you buy a block of land then get a house built on it, then you'd have all the costs and plans (and everything is new so no need to assess wear and tear) so a site inspection is not necessary. Any known costs are required to be used in any depreciation schedule. A Quantity Surveyor's traditional core role is to calculate construction costs from drawings - that's their bread and butter, so a site inspection may not be necessary. If however you buy a property with a house already on it then a site inspection would normally be required.
buster said:
By landscaping I hope you mean "hard landscaping" footpaths, retaining walls, driveways, fencing, etc and not things like grass, plants and dirt as they are not depreciable nor are they capital works items. Any "soft" landscaping works is an improvement to the land and not of a capital nature therefore not claimable in any way (other than in calculating any CGT upon sale of the property).
I'm not going to comment on if Depreciator or BMT are better (I've seen both reports and they generally are ok), but is it possible that perhaps in one report there was more "hard landscaping" on one property than another?
Hi Guys,
I rang Depreciator and got a quote from them but their report only goes for 20 years and most of the other companies' report goes for 40 years.
The guy from depreciator said there isn't much depreciation after 20 years and generally people do renovation in that time so they need another report.
I'm surprised how much would it cost them to do the reports for 40 years cos I'm sure not everyone does reno in 20 years time.
Cheers
Teshy
I rang Depreciator and got a quote from them but their report only goes for 20 years and most of the other companies' report goes for 40 years.
The guy from depreciator said there isn't much depreciation after 20 years and generally people do renovation in that time so they need another report.
I'm surprised how much would it cost them to do the reports for 40 years cos I'm sure not everyone does reno in 20 years time.
Cheers
Teshy
Not sure who you spoke to here, but it's really only the building that keeps going for 40 years from when it was built. The Assets will be written-off long before that. And the figure for the building will be the same every year.
Personally, I think even 20 years is too long for a Dep Schedule.
Rather that look for a Schedule that runs longest, I would look for a company that will update your Schedule free when you make changes to the property.
When a property changes, the Schedule needs to change.
New hot water unit? New carpet? New cooktop?
New Schedule.
Anybody who thinks they can rent out a property for 20 years without having to do anything to it is kidding themselves.
Personally, I think even 20 years is too long for a Dep Schedule.
Rather that look for a Schedule that runs longest, I would look for a company that will update your Schedule free when you make changes to the property.
When a property changes, the Schedule needs to change.
New hot water unit? New carpet? New cooktop?
New Schedule.
Anybody who thinks they can rent out a property for 20 years without having to do anything to it is kidding themselves.
Will the tax laws have changed in 40 years time? Will you still own the property in 40 years time? Will you still be alive in 40 years time?
Basically, whether the report is 10, 20, 30 or 40 years, it doesn't make much difference. If you use an accountant they often ignore the detailed schedule and enter the opening values for the items into their program and a depreciation rate and let their program do the calcs from then on. Basically the capital works deduction will be the same amount every year for 40years from when the property was built (excluding renovations). For the depreciable items, most people use the diminishing value method and after 10years (or sooner) typically most if not all of the items have a written down value of less than $1,000 so go to the low value pool where everything is depreciated at 37.5% pa. So if you have any residual depreciation it isn't difficult to work out yourself - multiply the total written down value from the year before, multiply it by 37.5% and you have the next years depreciation (and as depreciator said, it would be a very small amount)
Basically, whether the report is 10, 20, 30 or 40 years, it doesn't make much difference. If you use an accountant they often ignore the detailed schedule and enter the opening values for the items into their program and a depreciation rate and let their program do the calcs from then on. Basically the capital works deduction will be the same amount every year for 40years from when the property was built (excluding renovations). For the depreciable items, most people use the diminishing value method and after 10years (or sooner) typically most if not all of the items have a written down value of less than $1,000 so go to the low value pool where everything is depreciated at 37.5% pa. So if you have any residual depreciation it isn't difficult to work out yourself - multiply the total written down value from the year before, multiply it by 37.5% and you have the next years depreciation (and as depreciator said, it would be a very small amount)
No I went through the sample reports I got from them.
Sample reports of same property?
Best means best presentation, more depreciation or best ...? I have never seen a depreciation schedule, thus curious!
