How Much Does a Depreciation Schedule Cost?
Typically, you could expect to pay between $385-$770 for a depreciation schedule. The fee you’ll pay will vary based on the property type, location and complexity.
$500-600 is a fairly standard price for an established, residential home. In these circumstances, the properties aren’t brand new. This usually means you’ve purchased it from another investor or a former owner-occupier.
If you have built a brand new property or purchased a brand new apartment, you might qualify for a discounted fee. This discount is dependant on having the construction contract, plans and a schedule of finishes available.
What causes a variance in depreciation report cost across different companies? It usually comes down to the quality of the service that the quantity surveyor provides. Paying less may mean that you save money in the short-term. However, it could also result in you claiming fewer tax deductions on your investment property.
To find out exactly how much a depreciation schedule costs for your own property will cost – request an obligation-free quote from our tax depreciation specialists here.
The Timeline Process
You’ll need a depreciation schedule for any established investment property in Australia. This allows you to create a timeline that contains details about the property’s history. These details usually include the cost and completion date of the property’s original construction and any previous owners’ renovation work. You are eligible to claim rental renovation tax deductions, if either you or the previous owner has carried out this work.
Your quantity surveyor does this so you can assign a new depreciation life cycle to your second-hand assets. However, you can only do this on assets in a property that you purchased before the 2017 Federal Budget changes. You may not be able to claim tax deductions on the property plant and equipment that you bought after May 9th, 2017. The good news is that deductions on the structure of your property are unaffected!
The purpose of your timeline is to show what tax deductions you can claim. It will also create an annual schedule for these claims.
What Do I Get at the Lower End of the Scale
Let’s assume that you have decided to work with a quantity surveyor who charges less than $300. That’s a few hundred extra dollars in your pocket, but the schedule you receive may not be as detailed as you would like.
For example, most surveyors at the lower end of the price scale don’t usually provide the following:
- The option to use low-value and low-cost pooling to increase the amount you can claim
- Completion of additional searches that would have helped to find approved works by previous owners that you can claim for
- Full itemisation of the individual assets contained in the property
- Adjustments of the effective lives of your second-hand assets
Furthermore, you may find that a cheaper surveyor does not have the relevant skills or experience. As a result, you don’t get the most out of your assets. You’ll still get a depreciation schedule. However, it won’t allow you to claim as many tax deductions in Australia as you may be entitled to.
What Do I Get With a More Expensive Surveyor
More expensive surveyors tend to provide better depreciation schedules.
You’ll receive all the following if you pay more for your depreciation schedule:
- A completely accurate estimation of every tax deduction in Australia you can make
- Access to more knowledge with regard to the latest tax legislation
- Checks to ensure your depreciation schedule meets the Australian Taxation Office (ATO) requirements
- A more reliable point of contact to ask questions
Such surveyors also have more experience, which they can use to your advantage. It’s unlikely you’ll present them with any scenarios that they aren’t familiar with.
What about Brand New Properties?
As a result, you can expect to pay less for your depreciation schedule. This is because most newly built properties come with more information. Your surveyor can use this to create more accurate estimates. They’ll have access to the costs of construction, floor plans, and, at times, even the value of the assets that came with the property. This means they don’t have to carry out an inspections= that they might do to estimate the value of second-hand assets in an established home.
Even with this lower cost, you will still receive the same level of service. The depreciation report will apply the new assets the home contains to either an immediate or long-term pool. This ensures you can claim the maximum tax deductions on your property.
If you have just purchased or constructed a brand new property, request your discounted quote here.
How Much Does a Depreciation Report Cost for a Commercial Property?
Prices may vary for commercial properties. After all, larger commercial properties require more work than regular-sized residential properties.
Schedules for small offices cost about the same as you’d pay for a residential report. However, the price may increase along with the size of your property. Even so, it’s worth getting a depreciation schedule. Not only will it help you with asset deductions, but you can deduct the cost of the schedule from your taxes as well.