Quantity Surveyor (or Tax Depreciation) Report
Quantity surveyor reports are usually another term for tax depreciation schedules. These reports are one of the ways an investor can maximise their tax return.
A depreciation schedule saves property investors money, by allowing them to claim deductions on the depreciation of their investment property.
Quantity surveyors have been recognised by the ATO as the experts in preparing tax depreciation reports and tax depreciation schedules.
Why do you need a Quantity Surveyor to prepare a depreciation claim?
According to the ATO, a quantity surveyor is required to prepare your depreciation schedule where the construction costs are unknown.
Quantity surveyors will estimate the original construction cost of your investment property, as well as identify and value any renovations and Plant & Equipment assets.
Essentially, you can claim depreciation on your investment property just like you can claim the wear and tear of a car. The great news is, you don’t need to incur any additional expenses to claim this deduction each year. In this way, it is known as a ‘non-cash’ deduction.
How much does a Quantity Surveyor report cost?
Prices for the Quantity Surveyor schedule vary but range from $385 to $770 depending on location and whether the property needs to be inspected or not.
Get a free, online quote today. One of our Depreciation Specialists will take a look at your property and work out the best depreciation plan for you.
What is the purpose of a QS Report?
A QS report, or depreciation report, is a detailed document compiled by a qualified quantity surveyor that outlines the depreciation deductions available for a property. The main purpose of this quantity surveying report is to maximise your tax deductions by determining the depreciation of the structure and fixtures of your property over time.
Quite beneficial to property developers and investors, the report allows them to optimise their tax benefits through accurate depreciation calculations, improve cash flow, enhance return on investment, and effectively manage their finances. It also provides valuable insight that can assist in budgeting, and making informed decisions regarding investments and property acquisitions, while remaining tax-compliant.
Is it worth it getting a quantity surveyor report?
As a property investor, getting a Quantity Surveyor (QS) report for the purposes of claiming depreciation can be highly beneficial. Here are some key reasons why it is worth it:
- Maximise tax deductions through accurate depreciation calculations.
- Improve cash flow and enhance return on investment.
- A quantity surveyor has the expertise to identify depreciation on all qualifying assets, including those that might be overlooked by someone without specialised knowledge.
- Provide valuable insights that can assist in budgeting and making informed decisions regarding investments and property acquisitions.
- Ensure tax compliance and reduce the risk of audits and penalties by maintaining accurate financial records.
Overall, property depreciation is an essential tool for optimising tax benefits, maximising profitability, and minimising risks in property investment endeavours.
How long does it take for a surveyor to do a report?
When it comes to the time frame of a depreciation report for your property, no two are the same. To determine the time frame, the following factors hold influence: the complexity of the property and the availability of the data needed to conduct a comprehensive report.
Nevertheless, the entire process includes the following:
Initial consultation and property inspection: This sometimes includes the QS doing a site visit and inspecting the property, which can take anywhere from a few hours to a full day, depending on the size and complexity of the property.
Data gathering and calculations: Once the inspection is complete, the surveyor will gather and analyse all the data, including construction costs, asset values, and other relevant information.
Report preparation: The surveyor will then compile all the information collected into a detailed depreciation report.
Report finalisation: The final step involves reviewing the accuracy of the report, which can take a few days.
In total, you can generally expect the entire process to take anywhere from one to three weeks. In some cases, it might be faster if the property is straightforward and all necessary information is readily available, while more complex properties or those requiring additional research may take longer. It’s always a good idea to ask the surveyor for an estimated timeline based on your specific property and circumstances.
