Can I DIY my own Depreciation Report?

As an expert in the market I am baffled by the number of companies that offer do-it-yourself depreciation schedules. Not only are there some potential legal issues but, more importantly, you will be missing out on deductions.

The Issue with DIY Depreciation

The DIY depreciation option generally gives you a tick sheet and asks you to take your own measurements of rooms and other parts of the property.

DIY depreciationNow, let’s say you measure from one bedroom wall to the other. If you do that all around the house you could reduce the property by 10% in gross area. At around $1,500 per square metre to build, you would have missed out on something like $15,000 worth of tax deductions.

When a client comes to us needing a depreciation report, we will send out a quantity surveyor to do a thorough site inspection. This involves a measurement of all the rooms and areas in the property (allowing for wall widths and other anomalies) and all the plant and equipment items including carpets, blinds, ovens and air conditioners.

It is a thorough process and you should use technically qualified people to do it.

The Australian Institute of Quantity Surveyors’ (AIQS) Code of Practice also stipulates that site inspections are necessary to satisfy ATO requirements. This guarantees you won’t miss out on any deductions. The documentation can then be used as evidence in the event of an audit.

Depreciation CalculatorThe AIQS also points out that those property owners who attempt to estimate their own depreciation, or use non quantity surveying qualified people, risk submitting an incomplete or poor depreciation report, which could be a double whammy. It could not only cost them in missed deductions but could also possibly attract an audit by the ATO if their report is not up to the standard required.

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

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You need to use an Experienced Quantity Surveyor

Use an Experienced Quantity Surveyor

I’ve already touched on this, but let’s put this issue in perspective. You have just paid hundreds of thousands of dollars for a property. Do you really want to save a couple of hundred tax-deductible dollars on the only tax break available to you that can be open to interpretation and skill?

The laws have changed frequently over the years and each building is unique, so it pays to get expert advice. Depreciation Calculator

I suggest you engage a firm that has been around for at least 10 years. They will have the necessary experience to analyse your property correctly. Don’t fall into the trap of assuming that anyone involved in the project can accurately estimate the construction costs.

At Washington Brown, we are experts at estimating construction costs. That’s what we do on a daily basis, whether it is for a property developer, a property financier or a builder. Your report will be prepared by an experienced quantity surveyor, ensuring you get maximum value.

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!

Figures at your Fingertips | Depreciation Reports

Figures at your fingertips

Nowadays, with all the technology that is readily available the best depreciation reports have the ability to be downloaded to an Excel spreadsheet or even to be imported into accounting software packages.

Our reports at Washington Brown give you these Depreciation Quote Schedule figures at your fingertips.

This means when you receive your depreciation report you can extract the numbers into your own spreadsheets or, better still, your accountant can load them straight into their software package.

This will save your accountant time (as they won’t be required to enter the data manually) which you would expect would save YOU money in accounting fees.

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!