Quantity Surveyor Reports

[Quick Learner]

Hey guys,

I'm looking out renting out a property that has had a major renovation done to it. Everything plant equipment, fixtures and fittings etc... is new.

Is there any point in getting a QS in to do a report. The two that I have spoken with say that I should just present all my records to my accountant and get him to come up with a depreciation schedule.

Has anyone been down this path, what did you do. Is there any advantage to getting a QS report done.

Thanks all

QL

 

[depreciator]

If you have all the costs and you have a competent accountant, you'll be fine.
When you have actual costs there is an ATO expectation that you use them. When actual costs cannot be found, an estimate from 'an appropriately qualified person' is acceptable.
Scott

 

[WashingtonBrown]

Hi

Did you do the work?

Regards

 

[landlubber]

Quicklearner,
Be a real quicklearner, use the experts. From experience over many IPs ....these guys have will find/identify/unearth deductions that the best accountant won't find...plus you're covered for the ATO if ever they come knocking.

I can't recall one IP where the cost was not justified.

LL

 

[yadreamin]

Quicklearner,
Be a real quicklearner, use the experts. From experience over many IPs ....these guys have will find/identify/unearth deductions that the best accountant won't find...plus you're covered for the ATO if ever they come knocking.

I can't recall one IP where the cost was not justified.

LL

here here
Dont even think twice about it just get it done.Besides its better to get it done before tennants move in.
cheers yadreamin

 

[rj]

Are Surveyors only required with long term rental IP's or can you get them onboard with IP's that you plan to onsell in the short term? (3-6 months)

RJ

 

[alexlee]

Are Surveyors only required with long term rental IP's or can you get them onboard with IP's that you plan to onsell in the short term? (3-6 months)

RJ

Doesn't matter. The report is only made out to you (the person who engaged the QS). If you sell it in the short term you can only claim depreciation for that period. You sell it, the report becomes useless.

Technically QS reports aren't 'required', but I'd definitely want one (with the surveyor's credentials and company details) I can show the tax man when he comes knocking.
Alex

 

[landlubber]

RJ,
My experince is that you MINIMUM get the fees back in one tax return in "stuff" that I would not have even thought about !! In my early days I used to make the "estimations" myself to "save" money ... WRONG !!! DUMB !! So short term , long term ...use them . New IP, old IP...use 'em.

If furnished in any way ...(even if it looks insignificant) ...DEFINITELY use them.....

Also .. if you are on-selling to an investor it (the report & depreciation schedule) can be a great selling tool, if used correctly.

Like Amex says ...don't leave home without it !

(No ...I have no connection AT ALL to these guys....).
I'm just a happy mug investor !

LL

 

[rj]

Sorry for the threadjack but what are the associated costs? And could someone post up a copy of a "report" or at least an example?

RJ

 

[depreciator]

RJ,
On a newish property there would be sufficient depreciation in 6 months of ownership to make a schedule worth getting. Of course, the property must be available to rent to claim depreciation.
Send me an e-mail and I'll send you a sample Schedule.
Scott

 

[Quick Learner]

Finding more deductions?

Did you do the work?
Regards

Did the painting and landscaping..... That was enough
Major trades done by others

Thanks for the comments so far...

If I have completely stripped the property back and everything is new in it plus the dwelling is pre 1985 how can a QS find more deductions.

Regards QL

 

[WashingtonBrown]

Well....

how can a QS find more deductions.

We look harder!!

A QS knows property better than an accountant. (Or a good QS anyway)

Heres an example...If the oven was $1000 and you had it installed by the plumber - and the plumbers total contract value was $6K....

How or what proportion would your acct add to the ovens installed cost?

So in general - the overall cost would equal your accountant in this case (maybe)...a good QS may be just able to squeeze the deductions out a little quicker for you.

That said, in some of the developments we work on - the "development costs" can run over three pages...and apportioning what is div 43 and whats not - can be a big task.

Taking that knowledge and applying it to small projects tends hopefully enable us to extract more for your than your accountant.

Whether it would be worth it (in realty) - on work less than 50k - is marginal.

Regards

 

[rj]

Send me an e-mail and I'll send you a sample Schedule.
Scott

Email sent - Thanks Scott.

RJ

 

[depreciator]

E-mail not received as yet?

 

[TomL]

We look harder!!

A QS knows property better than an accountant. (Or a good QS anyway)

Heres an example...If the oven was $1000 and you had it installed by the plumber - and the plumbers total contract value was $6K....

How or what proportion would your acct add to the ovens installed cost?

AHA... This is exactly what I was getting at with my other thread.

This is why i wouldnt even question using one of you guys. In fact, my accountant insists on it!

Tom.

 

[WashingtonBrown]

In fact, my accountant insists on it!

Good for him!!

You know...the ITAA is so large and complex....how an acct is meant to be an expert in all facets...amazes me.

I dont know much in life...but i do know a couple of sections pretty well - mainly Div 43.

There are many ways to enhance a claim - and your acct appears to be giving you the right advice!

Regards