If you purchase an IP and the Vendor (also an investor) already has a depreciation schedule in place – is it true you have to take on their schedule/figures – or can you get an independent QS Report compiled no matter what ???
i bought an IP off the vendor who had the property as an investment, and was originally told i could use that QS report. My accountant however told me to get an independant one done, due to some law or other.
hope this helps
shaunLead, Follow or get out of the bloody way
Yes you can use an existing report (but don’t have to), however it may be worth while to get a new one done by a professional company. Try http://www.depreciator.com.au they guarrantee you will be able to claim more in your first year than the cost of the report.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Taleisha,
As the full price of a QS is tax deductable and not all QS providers are registered, it is much wiser to do your own. On the flip side, if you know the QS provider is reputable, then go for it.
Cheers Rhino[
]As the full price of a QS is tax deductable and not all QS providers are registered, it is much wiser to do your own. On the flip side, if you know the QS provider is reputable, then go for it.How to do your own QS report?
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hi Chan$,
When I say do your own, I mean organise your own QS with a registered company rather than taking on one from the vender, who’s QS might not have been above board in the tax mans eyes.
Cheers Rhino [
]Re: http://www.depreciator.com, I have compared their prices to various other QS’s and they are a little more expensive. The others that I have engaged do also provide a similar gaurantee re tax savings being twice the amount you paid for the report.
When choosing a QS, make sure they are registered as a member of the Australian Institute of Quantity Surveyors (www.aiqs.com.au)James
Hi All,
Firstly i must declare my interest in that I am a QS who specialises in depreciation. Quite a few issues have been raised here.
1. Membership of AIQS( which I am ) is not required however your QS must be registered with the Tax Practioners Board
2 Developers often supply "marketing depreciation schedules" The ones I have seen are all based on an average (compared to a specific) appartment with the average purchase price based on the average specification. Normally they have a disclaimer that says that it not suitable for use in tax returns
3 Depreciation calculations are partially based on the price paid ie the purchase price, so unless the previously done depreciation report used the same purchase price as you paid you cannot use the report
4. under the rules of self assessment you can do part of the work and save about half of the fees
5 QS guarantees of the first year claim are pretty meaningless as a typical report costs $500-600 and a typical new property's depreciation claim for the first full year is approx >$10,000
<moderator: delete advertising>Just bought a IP that was built in the late 70s.
While the property is in good condition there doesn't appear to be any new renovation. ie kitchen, bathroom carpets, window coverings are probably about 10 years old.
for this IP would it be worth getting a QS report? i am thinking the depreciation on most items for tax purposes would be over and plus we are not particually high income earners.What’s the point of taking on someone else’s dep report? The previous vendor has already claimed the maximum depreciation in the first few years (as the QS saw it), so why not start again with a new report?
Hi All,
You'll find that by using someone's existing report you're doing yourself an injustice as upon settlement all plant & equipment assets (carpets, blinds, kitchen appliances etc) are revalued due to their effective lives starting again. As the previous owners claims are low at your point of purchase, once a new depreciation schedule has been prepared the figures will have increased and your claims looking more substantial.
Even properties that are built before 1985 will attract some form of depreciation claim – whether they've been renovated or not. Whenever you purchase an investment property I would recommend contacting a specialist tax depreciation firm to organise a report to maximise your deductions.
As of 2011, it's important to choose a QS that is also a Registered Tax Agent with the Tax Practioners Board – legislation has changed and all QS's preparing depreciation schedules must also be a Registered Tax Agent not just shown to be a member of the AIQS (QS governing body).
I hope this helps,
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