Do I need a QS?

Hi all,
I am a new member to the forum. I have just bought my first
IP which is a new display home. I was wondering if I need a Quantity Surveyor for the items in a new home or do I just get a list of the fixtures and fittings from the builder? I have asked the builder and they are not sure what I can claim. So does
anyone have a list? I have got Jan Somers book with her list on
p 184, but I am not sure if this covers everything. Can anyone help?

Roz
 
Welcome to Real Estate Roz- may your journey be a rewarding one.

Get a QS report. It costs about $400, deductible. It's not just fixtures which are depreciable- the house itself (building costs only) can be depreciated, as can permanent items.

A QS knows all depreciation rates, and will give you a schedule of what can be claimed, at what rate, over the coming years.

But also keep your builder's costs- don't tell the QS you have that. If he undervalues anything, let him know. If he overvalues, well, I won't tell.
 
Hi,

I'm looking at purchasing a 30YO house and was wondering if there was value in a QS report.

I was thinking that at 2.5% I would still have 10 years of depreciation left; and could write off some extra stufflike carpets I plan to replace.

Noddy
 
Hi Noddy,

If the house was constructed prior to the mid 1980's and there have been no major alterations/additions or structural improvements since that time then you not be entitled to the 2.5% building write-off.

However, you may be able to claim dep'n on fixtures and fittings.
 
Hi Richard,

The carpet isn't 30YO (not new either!!). Even it it values at $1,000; It would still be worth getting the QS woudn't it??



Noddy
 
Recommended QS in sydney?

Hi all,

funky new forum we have here!

I was planning to flick through the archives, but it seems they are no longer.

I'm just wondering if anyone can recommend (for me and perhaps the others above) a QS in Sydney?

The prices Ive checked out seem vastly different ($450 - $800) and there is little for me to base my decision on. ie: basically who will give me the largers figures in the schedule.

Any experience / warnings / recommendations to share?

thanks!
AB
 
A.B.,

I used Deppro in Sydney on a couple of IPs and was happy with the results. The charged me a little bit less for an older property with less deductions. However if you have an idea of a particular cost, it might be worth telling them (informally) to make sure it's not undervalued.

Your criterion - whoever gives you the highest deduction - is important but there is another important point to consider. Who has the most trust from the ATO?

Deppro seems to be one of a few nationwide QS organisations with a lot of experience.

Another point is relevant if your IP is in a large unit development. Deppro would most likely have done another unit in this development before and would give you a schedule consistent with other similar schedules. Who knows what ATO might do if their matching program would find 2 similar units in the same development with significantly different building write-offs?

Say cheese :p ,

Lotana
 
Re the first question should I use a QS?

Apparently my tax accountant advises me that the Tax office would not look favourabley on depececiating building or F&F WITHOUT a QS (let alone the QS will probably think of more things than you will).

So he is suggesting that there is no basis for claiming anything unless substantiated by a QS report.

Food for thought..

Timbo
 
QS Report

Hi Roz

I too wasn't sure whether to get QS Report done but decided to do it after getting advice from forum members. It was well worth the money, it is set out very easy to understand and lasts for 40 years, I feel much more confident claiming depreciation now, I will always get one done for future IP's.

Regards

June
 
Hi All

Could I suggest that when asking for prices for Q.s Reports that you ask the Q.S firms whether they have heard about the Woodward v Commissioner of Taxation at the AAT hearing and whether they do their report in accordance with the outcome.
I think people might get a shock in how many don't know or believe that the ruling is wrong.
Interesting.

Hmmmm

regards

BrianH
 
Originally posted by Brian H
Hi All

Could I suggest that when asking for prices for Q.s Reports that you ask the Q.S firms whether they have heard about the Woodward v Commissioner of Taxation at the AAT hearing and whether they do their report in accordance with the outcome.
I think people might get a shock in how many don't know or believe that the ruling is wrong.
Brian,

My latest QS just reported all the figures, without any attempt to give a depreciation schedule. I'm cool with that.

But I will make sure I record everything electronically for my accountant- otherwise it may cost me heaps.

When I asked my accountant about that hearing, his opinion was that it was only the aggressive QS people/accountants who claimed items (what were they- fly screens, light fittings?) as separate depreciable items- and that most conservative people included those as a part of plant.

He did not see anything in my existing QS reports (which did include a full depreciation schedule) to indicate that there was any problem.
 
Hi Geoff

You would be suprised at how many interpretations of the what is plant and what is depreciable. What you have seems o.k as long as you or your accountant are quite happy to put under which appropriate heading.

Without giving names out, I had one that is registered member of the Australian Quantity surveyors Association. After seeing the ruling and me advising him that my report includes most of the things that were in that ruling. The Q.S said that is only a small court ruling and is utter bulldust(To put in Politely). I then rang the Institude to ask their opinion and they said to get a letter off the Q.S that he will stand behind his report and that it is done to the guidelines of the association.

REPLY from Q.S.

What guidelines and he said if you are audited it is me who has to defend it. He said he will amend it to be as conservative as I like but for me to tell him what I want changed.

So I decided to get someone else to get a new report done.

Sorry about the long post.
 
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