How do QS’s differentiate (or do they) between different quality fixtures and fittings?
That is do they take into account the difference in cost between, say for example
1. Miele v Whirpool cooking package
2. Local v imported light fittings
3. A given quality of carpetsOr is there just a generic cost in which they use to determine the base costs for depreciation.
Woodsman,
I’ve asked the same question to the Principal of the largest QS organisation in Australia. His response was thus;
“Our highly qualified surveyors assess that during the site visit and we then feed that data into our proprietary model here. The output to the model is what you see in your report.”
Being totally unsatisfied with his answer, I pushed further and requested a copy of the input sheet and some formula on which his model works. Both were completely ‘out of bounds’ and I had to simply trust what they were doing was correct without seeing any of the data.
I obviosly had a large problem with that as the data solely pertains to my property (which I think I have a right to know – especially the input sheet) and when I submit the return to both my accountant and ultimately the ATO for assessment, I really have no idea if the numbers are based on fact or guesses.
After explaining all of this to the Principal he condescendingly said that his organisation had never had a problem with the ATO before, and if I did encounter any grief with the ATO he would step in. Once again, as the investor and taxpayer ultimately liable who signs the return, I am still completely in the dark.
To say I was peeved at the end of the conversation was an understatement….apparently the general public who engage these QS’s are not intelligent enough to understand either the input or the analysis processes and hence are kept in the complete dark.
Cheers,
Dazzling
“Go hard or go home”
Gee, that’s an opening for some self promotion if ever I saw one.
We’re a little different from the average QS company.
The problem with the QS industry as a whole is that QSs have traditionally dealt with architects, builders, engineers, financiers, planners etc. Many of them aren’t very good at dealing with ‘mums and dads’.
It’s only been in the last 5 years that private investors have really cottoned onto depreciation and the QS industry hasn’t made the attitude shift.
Also, for the average QS, depreciation work is a small part of their turnover, so some don’t really put adequate resources into it.
We only do depreciation work and we’re by far the largest group in the country specialising in depreciation work.
We don’t use a ‘generic cost’ for assets. We will assess the value of an asset based on what we see. So a Miele stove has a different value from a Smeg, or a St George, or an Ilve or a Gagenau etc etc.
In our reports you will find an opening written-down estimated value for every single asset, so you can check them. You need to bear in mind, it is an estimate.
Let’s say you buy a 4 year old townhouse. We need to estimate the value of that oven as of the date you start to rent out the property.
Co-incidently, we had a client yesterday query the estimate we put on a dishwasher. We had estimated its value on the first available to let date at $800. The client had a receipt dated 4 months prior to this for $1,090. (She paid too much). We love receipts – actual costs are always preferred (by us and the ATO) to estimates. She faxed the receipt to us for our records and her report was amended and re-sent in 4 minutes.
Easy.
We can only do this because we have structured our business solely to deal with individual investors.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
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