I'm new to all this and have just bought 2 IPs. 1 is about 19 years old, the other I would guess about 10 years older. I'm interested to learn what other people do when they get a new IP re depreciation. I mentioned getting a QS to look at the place to my accountant and his response was "there's no need to do that" (perhaps so that he can come up with a dep schedule and charge me for it?!)
Depreciation schedule - who uses the experts?
- Thread starter coolie21
- Start date
If the properties were built after July 85 (and it sounds like they were), you'll be able to depreciate the original cost of the building. Your accountant won't be able to arrive at that figure - accountants don't have the relevant expertise as set out in the legislation. Lots of accountants used to guess it, but the ATO has been saying to them for a years that they have to stop doing this. When it's just Assets (fixtures and fittings) anybody can really have a stab at the value.
But I am biased.
Scott
But I am biased.
Scott
Tax Depreciation Schedules - Australia wide service - 1300 660033.
www.depreciator.com.au
[email protected]
Have used both and my experience and additional information acquired through using them has been most informative and worthwhile.
Can recommend both most highly.
Can recommend both most highly.
I'm Biased too!!!
I have argued in this space that the use of QS (Good one) can enhance your claim. Julia (Bantacs) has quite rightly suggested that a QS is not ALWAYS needed...
I would argue that in 98% of properties...a GOOD qs will enhance a clients claim over and above an accountant. And have stated many reasons why...
In terms of members saying this person did a good job this qs didnt...
I think ALL reasonably sized firms would agree...THAT
You can't get it right ALL of the time...That some of our job roles are out of our hands (rentants) ....but we try.
I would also say that the level of service from QS firms has increased over the years...and that those with a good customer service level will survive.
Those that don't will subside......
PS Thanks to the above
Regards
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As an investor, I would say ALWAYS use a QS. No way in heck would I know enough about the rules to do it myself, and I wouldn't expect an accountant to be as savvy about the rules as a QS. For the couple hundred dollars that it costs, it's worth it to get an expert.
Alex
This is very true!! Where the costs are genually unknown...i am yet to see where a taxpayer cant get three reports commissioned and use the highest one. (IN FACT i encourage it!!!)
Similar to Valuations...
Regards
Looks like the vote is going towards the experts..
http://www.depreciator.com.au/driver.asp?page=main/home
Just as an aside...
I had an accountant (long since gone) who wanted to estimate my deductions at $4,500 on a particular property...
A reputable, ATO recognised quantity surveyor put the number closer to $11,500...
Go with the people who know what they're talking about, coolie21...
Jamie.
Hi Splade,
Recommendations from this forum should definitly help! We've used Scott (The Depreciator) before, and having just done our last years tax return (yes, very late!!) - I'm once again thrilled we spent those extra hundred $$'s on getting that QS report (and I can absolutely recommend Scott, he's very helpful, gets back to you extremely quickly, and provides a very indepth report which my accountant loves!) - and of course, when the accountant tells you what your tax return check will be - only smiles!!
(Depreciation is as close to "free" money in my mind as you can get, and paying a few hundred $$'s for many years of free money is well worth it!)Cheers,
Jen
Hi
I, too, have used BMT & Assoc for my QS schedules largely because of their format and ease of use, let alone their content.
We find that some QS reports are not overly easy to understand or use and especially if you get a report done for properties that you have owned for more than a year.
We have also used a local QS for properties in the eastern suburbs of Melbourne. CMR & Assoc have been helpful and good.
Have fun
Dale
I, too, have used BMT & Assoc for my QS schedules largely because of their format and ease of use, let alone their content.
We find that some QS reports are not overly easy to understand or use and especially if you get a report done for properties that you have owned for more than a year.
We have also used a local QS for properties in the eastern suburbs of Melbourne. CMR & Assoc have been helpful and good.
Have fun
Dale
Ditto....and it's worthwhile asking the QS for a discount if you have more than one property to assess, especially if they are geographically close to each other...WB have saved me a motza! Happy with that!
Hi Splade...
This is certainly true for say a small 1980 one bedroom apt.
But you would be surprised on the differences some reports can generate.
We were recently instructed to look at a caravan park. The original QS report had $50k in the first year.
We managed to get the client over $100k in the first year (AND more than $500k over the life of the asset) - just because that QS didnt have the obvious experience in this type of development. VERY happy client and funnily enough we got paid by return mail!
So yes i was being slightly cheeky - but as a rule - i guess i was pointing out that the fee on this type of exercise can sometimes pale into insignificance in relation to the fee.
Regards
Its interesting this poll is so high indicating they use a QS.
Thats probably because people here love property investing an are educated about it.
What do you reckon Scott the real number is overall. I reckon it would be lucky to be 30-40%? Hard to day...
Perhaps that should be our next ad
"98% of Experienced Investors on Somersoft use a QS - Ask yourself why!!!"
Regards
Thats probably because people here love property investing an are educated about it.
What do you reckon Scott the real number is overall. I reckon it would be lucky to be 30-40%? Hard to day...
Perhaps that should be our next ad
"98% of Experienced Investors on Somersoft use a QS - Ask yourself why!!!"
Regards
