Depreciator V Deppro

Patosan said:
I believe this is not uncommon Skater,

What initially made you upset with the way it was done ?
How did you find out they hadn't inspected ?
What was their response ?

Have a good one
Patrick
Hi Pat, I won't answer those questions online as I don't want to get into trouble, but happy to tell all offline.
 
Depreciation Delays

I undertook to have a tax depreciation schedule done on a Perth IP of mine some months ago and couldn't believe how long it took.

I used a much publicised and recommended company and waited ???????? (would you believe?!!) 8 weeks for the schedule!!!

When I called time and again only to be told by an extremely rude woman that it's in the pipe line. It arrived in the post (can't email??).

I asked if this was the pipe line from Perth to Kalgoorlie. As well as being rude, she also lacked a sense of humour.

I now use a company that emails me the schedules with 2 days of the inspection, is cheaper and the guy has a great sense of humour.
 
Phew, it's not us.
We e-mail out Schedules (unless post is specifically requested). I can't work out why people opt to mail things when e-mail is so much cheaper? We also e-mail copies of client Schedules to their accountants, and accountants much prefer soft copies to file. It's also much better that your accountant gets your schedule BEFORE you see them, rather than being presented with it when you see them to get your tax done.
And we have no humourless rude women here, only pleasant, helpful ones who laugh at my jokes.
Scott
 
BMT also email copies of the depreciation schedules. It saves time, is easier to archive, easier to send to multiple recipients at relatively low cost and definitely not as easy to loose. We also find that the accountants much prefer a soft copy for these reasons.
We actually do the reverse to Scott i.e email the report when/if requested (always give the option) and always send a hard copy of the report. Postage can be expensive but not all people have or use email.
Some investors just like to hold/feel the weight of their deductions in the report. BMT reports can be extremely heavy!
We at BMT regard client satisfaction as the number one priority and if that means acknowledging a joke (good or bad) we will do so.
Sounds like that pipeline needs a good clean!


Best Regards

David B
 
Gross misinformation

Michael Yardney said:
Most of the companies do not use "quantity surveyors" to do the initial property inspection, but the report must of course be signed off by a QS..

A bit like the book keepr in your accoutant's office doing most of the number crunching or the law clerk doing some of the work for your solicitor.

I have found Deprro efficient - they have done reports for me personally and for clients.

Hi Michael,

There appears to be a lot of rubbish that gets reported on this site, in the press and at investment forums/seminars. Firstly a tax depreciation schedule DOES NOT have to be done by a quantity surveyor, although company's like Deppro would like everyone to believe this!
 
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Hi Frankly

You are indeed correct. There are other professions that can estimate the construction cost - where they are unknown...such as a builder, architect or clerk of works.

Whilst this is indeed correct, the QS profession is far and away the best suited to produce this information under the current legislation

However none are legislated - the ATO has, however, expressed its view on the matter through tax rulings.

If buildings were brought into line with other depreciating assets ie opening written down value at cost - then valuers would be more suited.

John Ralph alluded to this in the ralph report - but luckily (for the qs profession) nothing came of it. That said - it wouldv'e cost the govt. a fortune!

I think what Michael was referring to - was once you have instructed a qs firm - then a QS needs to sign this off.

But more particulary needs to be able to stand in a court of law and defend such.

Unlike Valuers - QS dont have QS number or certificate number.

Which is a shame in someways... So most companies sign their report under the co. liability.

Anyway goodnight!
 
Recommendation?

Hi Frankly 1,

Do you have any other recommendations for who you would like to prepare the depreciation schedules?
You sound like you do not like the idea of a QS being one of the most appropriately qualified professions to prepare the reports.

The obvious tax ruling you are referring to is TR 97/25 which as Tyrone has mentioned states

27. Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.

28. Appropriately qualified people might include:
- a clerk of works, such as a project organiser for major building projects;
- a supervising architect who approves payments at each stage in major projects and who may approve individual payments to subcontractors in smaller projects; or
- a builder who is experienced in estimating construction costs of similar building projects.

and the amendment TR 97/25A actually states that

Paragraph 28
After 'Appropriately qualified people might include:'; insert:
*
a quantity surveyor, who has expertise in the relevant type of construction;'

Would be very interested to see who you recommend!

Best Regards

David B
 
Value For Money

I have had reports done by people that are really only a cross between a Builder, a Real Estate Agent and a Valuer. At the end of the day there were thousands of dollars lost because they just did not have the up to date knowledge on taxation or what was claimable. Or they left something out, or just had the value to low on items. (Although they were $200 cheaper than the Real Guys)

I recently had Depreciator do some work for me as well as other associates. I was pleased with the quick proffessional service. The report was emailed down within a few days. It was proffessionally done. Shown in a easy to read and understand format with coloured graphs and charts.

Far better than the basic typed list of items and no explanations that I have received from other so called experts.

So in finishing I would only ever go with the people that are up to date with what is required by law and what is claimable. Not Jo Blog that does a occassional report.

(If you had a heart attack would you go to a heart specialist or The local Medical Centre Doctor?) :eek:
 
Hi Gee Cee - i recently engaged a small firm to my report and also one of the larger firms BMT. (I used Emanual Petroh... - long name, sorry Emanual). i engaged them both to do a report on the same house of mine. It is a brand new four bedroom house.

The smaller mob said that the total claim was $75,000!!!. i knew this had to be too low because i just renovated my bathroom and kitchen on PPOR and that cost me $55,000.

BMT said it cost $216,000 to build - which is more realistic. that is a diff of $141,000!!!!!!!! i can tell you for the sake of and extra $300, im going with a reputable company.

word of advice, always use a well know company like BMT or Scotts firm.
 
Depreciator

Hi All,
After reading from this forum, I spoke to Scott (from Depreciator) about getting a schedule for 2 properties done, to my satisfaction he was quite upfront and honest. However, that's not the only thing, he even recommended NOT to get a schedule done for one of my properties, which is very nice of him! I don't mean to advertise for Scott but just thought I would bring this event to everyone's attention to highlight what they stand for. We need more people like him!

Ram.
 
Thanks Gee Cee, Farone and Ram.
Yes, if a property was built pre 85 and has had no improvements, there may not be alot of depreciation there to claim. Much will depend on the Assets (Fixtures and Fittings) in the property. If we don't think the cost of commisioning a Schedule is viable, we will explain this. And I will discuss with people how they can 'self-assess' the value of some Assets. That means they can still claim depreciation, it's just that they won't have to pay anyone to access it. There's no point spending $600 odd dollars on a Schedule if there is only, say, $400 in depreciation there in the first full year. I'd say other reputable firms would do likewise.
The vast majority of property investors only buy one property. That's why there are some companies (not just in our industry - brokers, pre-purchase inspectors etc) that prey on them. They don't care about repeat business, so they 'burn' first time clients knowing that there wasn't much chance of repeat business from them anyway.
To add to Farone's comment. On a new property (house or unit), the 'actual costs' are generally available and must be used. The ATO is very clear about this. If actual costs can be obtained, they should be used instead of an estimate.
Scott
 
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Do it yourself Schedules

I downloaded some schedules from a site recently that allows you to complete a list of items and fax to company who then complete the schedule. The cost was about $250. Anyone have any input on this ?
 
Isn't it funny how so many people's first or second posts sound like ads?
The Australian Institute of Quantity Surveyors would have some input on that service. And as the AIQS are in constant contact with the ATO about depreciation matters, I'd say they would be itching to have some input, too, not that it's really their job to regulate an industry.
Do I have a vested interest in pushing the QS barrow? Sure. But I'm also a property investor, so I know how they think. I imagine most serious property investors would much rather a QS visited their property. Who knows what they'll find that a layperson may miss.
Also, if the ATO ever ask a question about the origin of a Schedule, I'd say most investors would rather say 'a QS visited my property and put the Schedule together' rather than 'I downloaded some forms and ticked some boxes'.
Scott
 
Not an AD

A little bit presumptious I think!. I'm not asociated with them at all. So get off your box. It was a legitimate question . I am actually thinking of contacting you guys. I have several properties.
 
Yes, it was a legitimate question.
Those sort of things just annoy companies who are trying to operate within what we believe are 'best practice' guidelines.
I'm hoping our industry doesn't go down the track the valuation industry did when margins were eroded to the extent that some valuation firms now give what many people perceive to be a sub standard service.
I'm off my box, now.
Scott
 
Thanks

Thanks Scott,
I will contact you. I have not claimed depreciation for at least 4 years. I 'm just slack ! I expect a big discount !
 
A Big Thankyou

Hi Everyone,
Just wanted to publicly acknowledge my gratitude for Scott & Co. at Depreciator. Not only were they very prompt and helpful they were also nice and honoured their word! This is all thanks to this forum where I have had an opportunity to meet such wonderful people. Once again if anyone is even remotely considering getting Dep. Schedule make sure you give Scott's mob a go. :D

Thanks Scott.

Ram.
 
More praise for Scott and Depreciator

Hi guys,

I contacted both Depro and Depreciator by email. I never got a reply from Depro but Scott from Depreciator was very helpful. My situation is somewhat complex as I rent out roughly 2/3 of the house and I was mainly interested in the value of rennovations made to my place before I bought it (the house itself is quite old, but the rennovations are recent). Anyway, I had a very good experience with Scott and would recommend Depreciator to anyone. The report you get emailed to you has prime cost and diminishing value tables for the next 20 years. It looks largely auto-generated, based on figures entered by the QS, but it has the information that you need. Assets are helpfully divided between immediate write off, low value pool and effective life depreciation, and effetive life etc details are provided.

Cheers,
James
 
I notice that depreciator mentions that building costs per the building contract should be used for depreciation, but I thought you would have to take out the builders margin. I am undecided on if I need to get a depreciation report done, as I work for the building company so I can print off a list of all the actual costs. The problem is I dont know if all costs are claimable (such as Indemnity Insurance, Shire approval, Water Corp approval etc)
Would it be possible to get a report done based on these costs without someone having to go to site?
 
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