The Top 14 Questions from the Budget Changes

Well, the dust has finally settled on the new legislation regarding changes to the budget changes to depreciation that will apply to second-hand residential properties.

In this article we will dig deep into some of the questions we have commonly been asked since the 9th of May 2017, when the changes were announced in the Federal Budget.

Before we get into the nitty gritty let’s begin with a quick recap:

Property investors who acquire a second-hand residential property after May 10, 2017, that contain “previously used” depreciating assets, will no longer be able to claim depreciation on those assets. Depreciating assets, in this case, refers to things like ovens, dishwashers & blinds etc.

So let’s start with some of the easy questions we’ve been asked.


1. Do these new rules apply to brand new investment properties as well?

No, they don’t,  if you buy a brand new property you will be able to carry on claim claiming depreciation exactly the way you have done so to date. That means you can claim both the plant & equipment and structure of the building.

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2. How do these new changes affect purchasers of non-residential property like offices and industrial suites?

The proposed changes only relate to residential property. Commercial, industrial, retail and other non-residential properties are not affected in the slightest.

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3. Can I still claim depreciation on things like the bricks, concrete & windows etc?

Yes you can, provided the residential property was built after 1987 when the building allowance kicked in.
You will still need a depreciation schedule to calculate these deductions. This component typically represents approximately between 80 to 85 percent of the construction cost of a property.

Now would be a good time to get a quote for your depreciation schedule.

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4. Can I still claim depreciation on plant and equipment items if I buy them and have them installed?

Yes, you can, provided they are brand new or from 2nds World or the like.
However, if you buy a second-hand item off Gumtree, for instance, you cannot claim the depreciation.
There is now no other depreciable asset class where this occurs.
The new laws state that the item cannot be “previously used” in order for you to claim the depreciation on it.
However, if you buy a “previously used” lounge off Gumtree and put it in your office – you can claim it.
Go figure!

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5. If I buy a property in a trust or company will I get around these laws?

The proposed changes do not apply if you buy the property in a corporate tax entity, super fund (note Self-Managed Super Funds do not apply here) or a large unit trust.

This is interesting and I suspect a lot more people will start buying properties in company tax structures.

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6. What if I bought a property prior to the budget and lived in the property until now – can I claim the depreciation?

If you bought a property prior to the budget and it is owner-occupied, and then you move out after 1 July 2017 – you will not be able to claim depreciation on the plant and equipment in that property.

The property needed to be income producing in the 2016/17 financial year.

Those items will be deemed to be previously used and caught in the net of the new legislation – even though you acquired the property prior to the budget. So, these changes are kind of ‘half-grandfathered’, if you ask me. If you did buy an investment property prior to the budget, I would recommend getting a depreciation quote now, more then ever.

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7. What happens If I inherit a property – can I claim the depreciation on the plant and equipment as well as the building?

Well, you will certainly be able to claim the depreciation on the residential structure of the building, provided it’s built after 1987. So there’s no change there – and this covers most properties.

Whilst there is no specific ruling on the plant and equipment it seems to me that if you inherit a property with plant and equipment items contained within, they will be deemed to be “previously used” and you won’t be able to claim them.

This would, in my opinion, even occur if the person that you inherited the property from, bought the property brand new.

As I mentioned, there is little guidance on this topic so it might be best to check this with the ATO if this question is relevant to you.

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8. What happens if I buy a unit that’s 3 months old where the developer has already found a tenant and is selling it “as new”. Can I claim both the plant and equipment and the building allowance?

In this case, the answer is yes. The new legislation allows a developer 6 months to find a tenant and sell it as a leased investment without nullifying the depreciation claim to the incoming buyer.

This was a late change to the legislation and occurred after industry consultation between the treasury department and the property industry (including myself).

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9. Can I still claim depreciation on a property that I bought overseas?

The answer is yes, you can depreciate an overseas investment property… but there are a few key differences.

The first main difference is with regard to claiming the building allowance. With Australian properties, you’re entitled to claim 2.5 per-cent of these construction costs per annum, as long as the property was built after July 1985. The rate for overseas properties is the same – but the date is different.

Construction of an overseas property must have commenced after 22 August 1990.

So, if you want to maximise your depreciation benefits on an overseas property, look for a newer property built in the last decade or two.

The plant and equipment, such as carpets, ovens, lights, and blinds, can also be depreciated as they would be in an Australian investment property but now they will have to be brand new or not previously used.

If you own an overseas investment property, start claiming the deductions, we do many reports worldwide.

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10. What happens if I engage a builder to renovate my investment property can I still claim depreciation?

In simple terms yes – provided all the plant & equipment items that were installed were brand new. You will also be able to claim all the structural items installed such as kitchen cupboards, tiling windows etc.

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11. What happens when you sell the property that you bought after the 2017 budget?

The Budget statement words it like this: ‘Acquisitions of existing plant and equipment items will be reflected in the cost base for capital gains tax purposes for subsequent Investors.’

This video explains the changes and also outlines our new report offering:

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12. Show me the numbers?! How much will these changes actually mean in terms of how much depreciation I will be able to claim moving forward?

Well in order to understand this – it’s best to examine 3 different scenarios:

Scenario 1:

An investor buys a brand new unit or house for $850,000.
Depreciation Budget Changes

As you can see from the above chart the depreciation amount you can claim if you bought the same property pre-budget or post-budget hasn’t changed.

That’s because a brand new property is exempt from these changes.

Scenario 2:

An investor buys a residential house or unit for $850,000 that was built in the year 2000.

Depreciation Budget Changes

As you can see from the above the depreciation allowances available have dramatically reduced in the early years now.

Towards about year 8 they level out and aren’t that different. This is because the pre-budget chart on the left-hand side still shows that you can claim the plant and equipment. Whereas the chart on the right-hand side shows how you can only claim the building allowance moving forward.

The key takeaway from this is: That the depreciation allowances on second-hand property built after 1987 are affected most in the first 5 years. After that – there’s not much difference.

Scenario 3:

An investor buys a residential house or unit for $850,000 that was built prior to 1987 – that hasn’t been renovated.

Rental Property Depreciation Budget Changes

Well in this scenario it’s all or nothing! Pre-budget we, as quantity surveyors, would visit a property, regardless of its age, and re-value the plant and equipment items like carpet, oven etc. In essence, starting the depreciation process again.

The Government wanted to stop this continual revaluation of plant & equipment and this will be achieved by the new legislation.

As you can see from the chart above if you buy a property that was built prior to 1987, there will be no claim at all if the property is still in its original state.

Why? Well, the plant & equipment will be deemed as previously used, thus no claim applies and in order to claim the building allowance, the property has to be built after 1987.

However, this is very rare, as most properties built prior to 1987 have had some renovation to them, whether that be a new bathroom or kitchen and those costs are claimable.

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13. Can I still claim depreciation on plant and equipment on my holiday home if I use it twice a year?

This is the biggest grey area of all the legislative changes in my view and one that will require further clarification moving forward.

The Government in the Housing Tax Bill Explanatory Memorandum states that if a property is used in an “incidental way” or “occasionally used” then your depreciation eligibility on the Plant & Equipment does not stop if you acquired the plant & equipment prior to The Budget in May 2017.

Incidental Use is described as:

“Use is incidental if it is minor in the context of the overall use and arises in connection with another non-incidental use – for example staying at the property for one evening while carrying out maintenance activities would generally be incidental use.”

Occasionally Used is described as:

Spending a weekend in a holiday home or allowing relatives to stay for one weekend in the holiday home free of charge that is usually used for rent would generally be occasional use.

It’s a bit vague, isn’t it?

Does one week a year over Christmas nullify your claim? What about if you stay for Easter and Christmas?

What does this mean for all the Airbnb landlords out there that claim depreciation but move in when times are quiet but acquired the property prior to the budget? They went into that investment doing the maths on being able to claim the depreciation on a pro-rata basis based on the tax laws at the time?

Now if they use the apartment for an unknown time they may be disallowed the depreciation deduction.

Strangely, this Memorandum, differs from the ATO’s website which was updated on the 15th of December 2017 which indicates that “Gail and Craig” who use their property for 4 weeks a year can claim the depreciation? “Kelly and Dean” would appear to be ok as well!

Whilst the Memorandum doesn’t give a time frame… it indicates that a weekend is OK…I would’ve thought 4 weeks would’ve been stretching it?! Who knows – pick a number????

This is at a time when the ATO wants to target Airbnb hosts and pro-rata any capital gain tax exemption that may be applicable.

Go figure.

Hopefully, sense will prevail and if the holiday home is clearly available for rent – like 11 months over the year – it’s still an investment property.

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14. I have been asked this many times: “Tyron, what do you think about the changes?”

I agree that the constant revaluing of plant & equipment items on very old properties made no sense and needed refinement.

However, I think the approach the Government has taken in disallowing depreciation on properties that are near new doesn’t make a lot of sense and could’ve been rolled out far more logically.

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The Budget Change And How It Affects Our Rental Property

rental property

Dealing with your rental property post-budget change

 

Before the budget change investors were entitled to claim plant and equipment and building allowance, so long as the property was built post-1987 and the property had settled within 10 years of getting the depreciation report, even if they had lived in the property prior, post or during the purchasing of their depreciation report.

A common question regarding the budget change:

The other day I received an email from one of my clients asking me for some personalised advice regarding his investment property and depreciation report. He told me he and his wife had purchased their first home in 2011. It was not a brand new property, and between 2014-2016 they rented out the property with a full depreciation schedule, claiming all they were entitled to. At the start of 2016 they Depreciation Quote Schedulemoved back in to their home, and are now looking to renting it out again.

He was wondering if they are still eligible to claim the original tax depreciation schedule they purchased in 2014, or do they have to adhere to the new government tax depreciation rules since the budget change concerning the plant and equipment on established properties.

I thought this was a great question, and wanted to ensure all of my clients and readers were aware of the significant changes to the way second-hand, previously used assets are now being treated moving forward from the budget change.

The changes outlined:

As of the Federal Budget Announcement on the 9th May 2017, the Government has disallowed depreciation deductions on items such as Ovens, Dishwasher etc. where they have been previously used.

Whilst these new laws are grandfathered and as such are only applicable to properties purchased after the May 9th announcement, one caveat exists: The property must be income-generating at some point between July 1st, 2016 and June 30th, 2017.

This meant, that even though my client had acquired the property before the budget, they were unfortunately ‘caught in the net’ because they were living in their property for the entirety of the 2016/2017 financial year. Due to this, those aforementioned items would now be considered ‘previously used’ and they wouldn’t be entitled to claim any further depreciation on them.

The explanatory memorandum issued by the Government is a bit ambiguous (if you ask me):

Depreciation Calculator“The amendments also apply to assets acquired before this time if the assets were first used or installed ready for use by an entity during or prior to the income year in which this measure was publicly announced (generally the 2016-17 income year), but the asset was not used at all for a taxable purpose in that income year. “

 

Note worthy:

It’s worth noting that these new rules only apply to residential properties. Commercial, industrial and other non-residential property are not included.

It’s also important to note that the way residential property investors claim depreciation on the building has not been altered. You can continue to claim the depreciation on the structure (all the bricks, concrete etc.) provided the building was built after 1987.

The Secrets of Backdating Your Property’s Depreciation

Property’s DepreciationProperty depreciation is one of the largest tax deductions for homeowners in Australia. But did you know that you can backdate your property’s depreciation? Doing so could save you thousands of dollars every year.

As an investor, you need to take advantage of all the tax deductions Australia has to offer. Property depreciation deductions allow you to control your cash flow from your property. As a result, you can use them to enhance your property’s profitability.

Many who own an investment property in Australia claim depreciation yearly.

Unfortunately, some overlook these deductions entirely. Happily, you can backdate your depreciation claims. Firstly, let’s look at what property depreciation means.

What is Property Depreciation?

So, what counts as depreciation for your investment property in AustraliaDepreciation Calculator

You can claim for any loss of value resulting from the wear and tear of the property as it ages. Capital works are the building’s structural elements, and you can claim for all of them, including the roof tiles and the concrete used throughout the building.

You can also claim for the wear and tear of any equipment in the property. This includes things like the property’s fixtures, but extends to things like carpets and ceiling fans. (Deductions for these plant and equipment items may only apply if you bought the property prior to May 9, 2017 – Read about the Budget changes here).

Claiming for your property’s depreciation is one of the most effective tax deductions in Australia. It allows you to reduce your yearly taxable income, which means your tax bill also decreases. When used correctly, depreciation allows you to take home more money each year.

Behind the deductions you claim for interest expenses, depreciation is one of the largest tax deductions in Australia. However, many investors fail to claim for all their property depreciation. Some even forget about it entirely, which could result in the loss of thousands of dollars over the lifetime of your investment.

Using Backdating to Claim Depreciation

So, what can you do if you haven’t claimed for all of the depreciation you’re entitled to? This is where backdating can help you.

There are two key steps you must take to backdate depreciation properly:

  1. Work with a Quantity Surveyor to create a full depreciation schedule for your property. Your surveyor will inform you about every item you can make a claim for. They will also discuss rental property depreciation rates with you.
  2. Bring the surveyor’s depreciation schedule to your accountant. He or she will alter your tax returns so that you claim for all of the depreciation you’re entitled to.

In most cases, you can only backdate depreciation for two years.

What is a Tax Depreciation Schedule?

Depreciation Quote ScheduleIf you’ve never claimed for your property’s depreciation, you may not know what a tax depreciation schedule is.

The schedule your Quantity Surveyor creates, offers a summary of every item in your property that depreciates in value. Think of it as an investment property tax deductions calculator focused solely on depreciation. The schedule notes every item, and informs you of how much you can claim for each over the course of the next 40 years.

As noted, your accountant can use this schedule to backdate your tax returns for the previous two years. However, they will also use it to help them to complete your future tax returns. This ensures you claim properly for all future depreciation of your property’s capital works and equipment.

Can I Backdate for More Than Two Years?

In most cases, you can’t backdate your tax returns for over two years. The Australian Taxation Office (ATO) has strict guidelines in place. These usually prevent you from exceeding the two-year limit.

However, that isn’t to say it is impossible. The ATO has different rules for companies than it does for individual investors. There are also different rules for those using a self-managed superannuation fund (SMSF), or a trust.

As a result, it’s worth speaking to your accountant to find out if your situation allows you to backdate for more than two years. It’s unlikely, but you may strike it lucky and be able to claim for even more depreciation than you expected.

Is Backdating Worth It?

Yes, it is. If you don’t account for your investment property depreciation, you could lose out on thousands of dollars every year. In fact, claiming for depreciation can turn a negatively geared property into a positive one.

On top of that, you can also claim the cost of your Quantity Surveyor as a tax deduction.

The Final Word

That’s everything you need to know about backdating depreciation. Speak to your accountant today to find out how far you can backdate your claims.

Washington Brown is here to help if you need a quality Quantity Surveyor. Contact us today to get a full depreciation schedule for your investment property.

The Depreciation Party Is Over

The depreciation party is over…

Well, kind of!

In an attempt to “reduce pressure on housing affordability” the Government has announced dramatic changes to the way depreciation is claimed on property.

Let’s start with the good news:

1.  Any existing investment properties purchased (contract exchange date) prior to May 9 2017 are not affected (unless they were not income producing in the 2016/2017 financial year).

2. Commercial, industrial and other non-residential properties are not affected.

3. Capital works deductions have not been affected. This means you will still be able to claim depreciation on the structure of the building provided it was built after the 16th of September 1987. And you will still need a Quantity Surveyor’s depreciation schedule to do so.

Now that we know what isn’t affected, let’s look at what has changed…

The government will limit plant and equipment depreciation deductions to outlays actually incurred by investors. In essence, unless you as the buyer had physically purchased the items – you can no longer depreciate them. This is a massive change to what you can claim – there by reducing investors’ cash flow.

Originally I thought a quick fix would be to structure the sales contract so that the plant and equipment is separated. But I suspect that the legislation will be worded such that if the plant and equipment was in situ at the time of purchase, you can no longer claim it.

You see, under the recent changes, I suspect the developer will be deemed to have bought the plant and equipment – not you.

budget depreciation changesHowever, the acquisition of existing plant and equipment will form part of the cost base, thus reducing your capital gains liability. So investors who hang on to their properties long term, will no longer reap the benefits of depreciating plant and equipment.

So in summary: if a residential property was built prior 1987,and has not been renovated – there will be no depreciation claim.

Depreciation CalculatorThis is very rare as most pre-1987 built properties we inspect have had some renovation carried out.

If built after 1987 – only the construction costs can be claimed.

Whilst there is still much uncertainty regarding the specifics of this budget’s depreciation-related changes, one thing is crystal clear: If you own a residential investment property and haven’t had a depreciation schedule prepared, now would be a good time to get a quote!

Developers, Project Marketers and Property Sales Agents – If you are selling property and using depreciation numbers that include plant and equipment: STOP NOW! This element needs to be removed from the selling equation, at least until the legislation is finalised.

Here is why I think this is dumb policy.

The proposed changes are being made to “reduce pressure on housing affordability.” In my opinion, it will have the opposite effect for 3 reasons:

  1. Property investors may now feel the need to hang onto their existing properties to continue claiming depreciation because if they sell that property they won’t be able to get as many deductions on the next one.
  2. Developers rely on high depreciation figures in the early years to show investors how affordable an investment property can be. If the allowances are taken away, they will struggle to get pre-sales which are required by banks to fund the deal.
  3. These budget measure are forecast to save $260 million over a 3 year period. I suspect far more will be lost if developers can no longer get new projects off the ground.

Whilst I believe housing affordability is a major issues, this appears to be policy on the run…so the Government can be seen to be targeting property investors, when changes to negative gearing could have been more effective.

I will provide a further update once the legislation is finalised.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation Quote Schedule

Staying Under the ATO’s Radar

Compiling the report properly

A depreciation schedule on your investment property can generate significant tax savings – as long as it has been complied correctly.

In my experience there are three main areas the Australian Tax Office tends to target come tax time.

1. Repairs and maintenance

One of them is whether you’ve claimed repairs and maintenance correctly. Now this can be tricky…

2. Income producing

Your property must also be income producing in order to claim depreciation.

For instance, if you make a repair while living in the property, then move out 2 months later, you can’t claim it.

ATO

3. Building allowance

The third area of concern is in relation to the building allowance.

The building allowance refers to the wear and tear on the actual building – things like bricks and concrete. You have to make sure they’re being claimed in the right Depreciation Calculatorcategory and not alongside items like carpets and blinds, which are considered plant and equipment.

The building depreciation allowance must also be claimed on construction costs – NOT the purchase price of your property. A mistake I see time and time again.

That’s where we can help! The Australian Tax Office (ATO) recognises Quantity Surveyors as the right people to estimate these costs. NOT valuers nor real estate agents.

Follow these rules

So there you have it. Make sure you follow these simple rules to stay under the ATO’s radar;

If you need a depreciation schedule for your investment property – get a quote here or work out how much you can save using our free calculator.

My Number 1 Tip!

I recently gave a webinar titled “8 Things You Don’t Know About Depreciation”. The feedback was excellent.

During the webinar, the most insightful topic I spoke about was on the effective life of depreciable items.

(NOTE: Deductions for these plant and equipment items may only apply if you bought the property prior to May 9, 2017 – Read about the Budget changes here).

effective life

You see, when you buy an investment property part of the purchase price includes things such as carpet, ovens, blinds and other loose items.

The Australian Taxation Office (ATO) determines how long these types of items will last for. This determination then governs how much you are able to claim annually.

 

Simply put, if the carpet in your brand new house has an effective life of ten years and has a value of $1,000, you can claim $100 per year over a ten year period. Simple right?Depreciation Calculator

But what happens when you acquire carpet that is seven years old?

Well, you (or a qualified quantity surveyor) can reassess the life of the carpet and assign a new effective life.

For instance, if the carpet is seven years old, you can say the carpet is only going to last for three more years. So now you can claim the remaining value at a rate of 33.3% per annum for the next three years to equal the same deductions you would have received over the ten years.

Effective life deductions can make a huge difference to the annual amount you as a property investor can claim!

How To Choose The Right Quantity Surveyor

Choosing a quantity surveyor that’s right for you doesn’t have to be challenging

quantity surveyorTo choose, buy and settle on an investment property is a lengthy process, and for good reason.

It ensures that procedures are followed and regulations are met before you are fully committed financially, and let’s face it, you’re spending a serious amount of money on something that you ultimately expect to make money on, so proper due diligence is paramount.

But what about the process you go through to purchase your tax depreciation schedule? While the cost may be a fraction of what you paid for your property, failure to obtain a thorough report is likely to cost you thousands in lost tax deductions every year.

Follow these steps to ensure you are maximising every possible cent and avoiding unnecessary interest from the tax office.

You need a Quantity Surveyor not an Accountant 

If your residential property was built after 1985 your accountant is not allowed to estimate the construction costs. Neither is a real estate agent, property manager or  Depreciation Quote Schedulevaluer. While
accountants can offer advice around other aspects of tax depreciation, construction costs and property depreciation are highly technical domains in their own right. You need a quantity surveyor to give you a report estimating these construction costs. Also, make sure your depreciation provider is a member of the Australian Institute of Quantity Surveyors (AIQS). (You can verify this by searching for the firm at www.aiqs.com.au).

Remember, also, that your quantity surveyor must be a Registered Tax Agent.

Use an experienced Quantity Surveyor

You just paid hundreds of thousands of dollars for a property. Do you really want to save a couple of hundred tax-deductible dollars on your only tax break that can be open to interpretation and skill? Talk to your quantity surveyor about the degree of expertise they have in depreciation. How long they have been producing reports and how often do they do so? Laws have changed frequently over the years and each building is unique, so it pays to get expert advice.

Work out how much you save using our free property depreciation calculator or make it happen and get an obligation free quote for a depreciation schedule now.

This blog is an extract from CLAIM IT!  – grab your copy now!

How to Stay Under the ATO’s Radar…

Learn how to stay under the ATO’s radar by watching this video

A depreciation schedule on your investment property can generate significant tax savings – as long as it has been complied correctly.
In my experience there are three areas the ATO tends to target come tax time.
One of them is whether you’ve claimed repairs and maintenance correctly. This can be tricky. Depreciation Calculator

Your property must also be income producing in order to claim depreciation.

For instance, if you make a repair while living in the property, then move out 2 months later, you can’t claim it.

The third area of concern is in relation to the building allowance.

The building allowance refers to the wear and tear on the actual building – things like bricks and concrete. You have to make sure they’re being claimed in the right category and not alongside items like carpets and blinds, which are considered plant and equipment.

The building depreciation allowance must also be claimed on construction costs – NOT the purchase price of your property. A mistake I see time and time again.

And that’s where we can help. Quantity Surveyors are recognised by the Australian Tax Office as the right people to estimate these costs. NOT valuers nor real estate agents.

So there you have it. To stay under the ATO’s radar, make sure:

Your repairs are being claimed correctly
The property is an income producing asset
The building allowance is based on the construction cost.
And most importantly, use a qualified quantity surveyor.

If you need a depreciation schedule for your investment property – get a quote here or work out how much you can save using our free calculator.

How to Choose a Quantity Surveyor

How to choose a quantity surveyor

How to choose a quantity surveyor – that’s right for you

Buying and settling on an investment property is a lengthy process, and for good reason. It ensures that procedures are followed and regulations are met before you are fully committed financially. And let’s face it, you’re spending a serious amount of money on something that you ultimately expect to make money on, so proper due diligence is paramount.

But what about the process you go through to purchase your tax depreciation schedule? While the cost may be a fraction of what you paid for your property, failure to obtain a thorough report is likely to cost you thousands in lost tax deductions every year.

Follow these steps to ensure you’re maximising every possible cent and avoiding unnecessary interest from the tax office.

You need a Quantity Surveyor not an Accountant

As we have said, if your residential property was built after 1985 your accountant is not allowed to estimate the construction costs. Neither is a real estate agent, Depreciation Quote Scheduleproperty manager or valuer. While
accountants can offer advice around other aspects of tax depreciation, construction costs and property depreciation are highly technical domains in their own right. You need a quantity surveyor to give you a report estimating these construction costs and make sure your depreciation provider is a member of the Australian Institute of Quantity Surveyors (AIQS). (You can verify this by searching for the firm at www.aiqs.com.au.)

Remember, also, that your quantity surveyor must be a Registered Tax Agent.

Use an experienced Quantity Surveyor

You just paid hundreds of thousands of dollars for a property. Do you really want to save a couple of hundred tax-deductible dollars on your only tax break that can be open to interpretation and skill? Talk to your quantity surveyor about the degree of expertise they have in depreciation. How long they have been producing reports and how often do they do so? Laws have changed frequently over the years and each building is unique, so it pays to get expert advice.

Work out how much you save using our free property depreciation calculator or make it happen and get an obligation free quote for a depreciation schedule now.

This blog is an extract from CLAIM IT! – grab your copy now!

Why You Should Use A Registered Tax Agent

Registered Tax Agent

Since March 2010, anyone who produces a property depreciation report must also be a registered tax agent. This is a good thing for property investors. I have been preparing depreciation schedules for more than 20 years now and have never seen so many “experts” entering the market over last few years. Depreciation Calculator

To be sure, ask your depreciation report supplier if they are a registered tax agent. You can also visit the Australian government’s Tax Practitioners Board website to check their credentials.

Remember, if your residential property was built after 1985, your accountant is not allowed to estimate the construction costs. Neither is a real estate agent, property manager nor a property valuer. You need a quantity surveyor to estimate the costs.

Work out how much you save using our free property depreciation calculator or make it happen and get an obligation free quote for a depreciation schedule now.

This blog is an extract from CLAIM IT! – grab your copy now!