Just wondering if anyone has used these guys before? And if the rate they are charging is at market?
They have quoted me $700 to come out and do an inspection and complete a detailed 23-page schedule comprising of the following:
1. A method statement;
2. Summary of Diminishing Value Method of Depreciation;
3. Summary of Prime Cost Method of Depreciation;
4. Schedule of pooled items for the property;
5. Lists all Division 43 (10C & 10D) allowances available from the property;
6. Detailed 40 year forecast table illustrating all depreciable items together with building write off for both Prime Cost and Diminishing Value methods;
7. Comparative table of the two methods of depreciation;
8. Common property items within strata or community title complexes such as lifts and swimming pools are included in the depreciation report for a unit in a multi-unit development;
9. The report is structured to facilitate the client to be able to amend previous years' returns to re-coup unclaimed depreciation benefits; and
10. The report is pro-rata calculated for the first year of ownership based on the settlement date so that the accountant has the exact depreciation deductions for each year.
I have one investment property. It is a unit which was purchased in 1960. Given it is >40 years old I will not be able to claim any deprecation on the property itself. However, the kitchen has been renovated, new decking has been put in and other minor changes have been made.
Is it worth the $700 fee I am paying to get these guys out? Or will the tax savings I get not be worthwhile given I will only be able to claim depreciation on the renovated parts of the building?
Anyone had any experience with this? Would much appreciate.
I've never seen a depreciation schedule that hasn't paid for itself within the first year or two – even on older properties.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What about for a property that is older than 40 years old? Where effectively I can only depreciate the renovations?
is $700 a good rate?
Here is the company I was going to use.
http://www.youtube.com/watch?v=0-1EpOFVTcU&list=UUhxgJIbDslHNRpGErj3gRnw&index=1&feature=plcp
Hi propertyboy, long time stalker first time poster! I couldnt help but see your post about depreciation as I’ve had a few lengthy discussions about this over last month or so and thought it may help you.
I’ve personally used BMT a number of times. Rather than rattle it off as my first post I thought you might like to see to see a few good discussions about it you can see them here which hope helps.
Overally I’ve used the cheaper ones, tried it myself once and have used BMT. Definetly worth paying for a proper report but I’ll let you read the discussions.
If you have any particular questions PM me. If I’m not supposed to link to other forums just let me know i’ll remove and copy and paste my replies but just thought it would be easier.
http://somersoft.com/forums/showthread.php?p=917070#post917070
As with everything I do, always negotiate, even if it’s $5 less, that’s a cup of coffee
. Just had 1 done few days ago with them.Lol yes gng, coffees aren’t getting any cheaper but then again macca’s coffee vs well brewed cup you will pay a premium for that too!!
Its a fun juggling act!
propertyboy wrote:What about for a property that is older than 40 years old? Where effectively I can only depreciate the renovations?I claimed over $2k on a 40 year old property last FY….report cost me $500.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Did you negotiate $500 with BMT?
Was your deduction 2k? Or is that the amount you saved on tax?
Because if thats how much you saved, assuming you are on the 30% tax bracket that would mean the deduction was around $6.666k (2000/.3)
I am happy to pay the $700 a year if I can get approx 6k deduction in the first year.
I was told 6k is around the average for buildings older than 40 years old.
No wasn't BMT – I can't remember who it was, would need to check. Possibly corpred.
$2k deduction – which is still a greater saving than $500 (and that's only one year of deductions – it will continue for a little while yet).
Why don't you use one of the online depreciation calcs to get an idea of what you can claim.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Did you get more than one property done?
I got BMT down to $630, should I just go ahead with them or go for a $500 one?
I like the Guarantee which BMT provide.
"BMT Tax Depreciation provides the guarantee that when you receive a BMT Report your depreciation deductions will be maximised. If we can not obtain double our fee worth of deductions in the first full financial year claim, there will be no charge for our services"
I've had 5 schedules done up and have used a few different companies.
Personally I wouldn't stress too much about the immediate saving and rather focus on getting a good QS onto the job.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I have had a few jobs from BMT done so far. One was a really old place, built in 50’s, unrenovated but had quite a few things in it. Got about $1800 in the first year for that one. I was happy with that thought I would get nothing at all.
The other few have all been renovated or newer so have had much more, one of the brand new houses I built the BMT report ended up with $16k in the first year.
Think Jamie is right, comes down to getting a good QS I’ve read some horror stories and some of those onlines ones that dont even visit the property – I can’t remember who it was when I rang and they asked me to go fill out a form at the property. Im not the expert aren’t they meant to be going out there? Makes no sense to me!
Oh I think I came across a newsletter from washington brown that they are offering 1 yr YIP magazine if you get it from them. I believe they are quite well known in this field as well. The 1 yr YIP may be before 1 July though, better check with them.
Cheers,
Any good QS company should be able to guarantee you at least double your cost to do the report in depreciation deductions. Even though the house is old you would be surprised at the amount of deductions that are available, eg. Lino on a floor, 1/2 the cost of the fencing to boundary etc etc… I recently used a company in Perth called Dep-pro. Their fee's are much lower than this but the fee is not an indicator of the best price. I've used them three times and service / report is excellent. Worth doing.
If you decide to go there call and ask for Colleen she's the ops manager. Tell her you got a referral from existing client.
Good luck, hope it goes well.How much did dep-pro charge you?I have a quote for $550 from Washington Brown and $640 from BMT. Should I just go with Washington Brown?Washington Brown said they send qualified QS to all inspections.
Definetly make sure a qualified person is being sent, I think thats what some of the cheaper ones dont do which is scary.
I went with BMT because when I googled BMT Tax Depreciation and all the stuff that came up I new I was dealing with a professional company and if paying $50 got me an extra $2,000 in that first year I used it then it had paid for itself!
Let us know how you get on when you decide – have to got some example reports to look over thats another thing I asked each place for so I could view the products.
Washington Brown said they send a QS to do the inspection and they provide the same guarantee as BMT so why should I pay extrea $110 for BMT?
No idea you may have to ask them.
Have you seen both their reports, I remember I got them all to email me samples before I went ahead with anyone just so I could see the layout and my accountant had recommended BMT for that reason but I cant remember if I saw a Washington Brown one at all.
If you go Washington Brown let me know details about your property I have a nice portfolio of new, old, renovated, unrenovated etc etc all have reports we might be able to compare what deductions we got.
I got quotes from $200 up to $1,200 on some of my reports so 500-600 is right in the middle but I chose based on
: Quality
: Report layout
: Recommendation from accountant
: People that were recommending that company (large organisations) etc
: Exposure I’ve seen the you tube videos, I’ve seen Mr Bradley Beer on TV and on news articles etcThats just my personal opinion and like I said be interesting to compare if you go for the cheaper product.
. Just had 1 done few days ago with them.
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