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Depreciation Schedule before Settlement or ok just before tax filing?

Discussion in 'Accounting & Tax' started by cheekykoon, 4th Oct, 2015.

  1. cheekykoon

    cheekykoon Well-Known Member

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    Dear Tax experts,

    I've read that it is better to order the depreciation schedule and have the Quantity Surveyor do the depreciation schedule before settlement. I've enquire about this to my agent and they say, its not necessary. The accountant can do it just before the tax filing.

    I've asked for quotes from some companies and they come in around $800. The accountant seems to be able to do it for less than $200. That is very good for me, do I trust that he can do it for this amount? or for QS to start work, generally, it is about $800?

    ck
     
  2. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    If your going to pay cheap expect a cheap result.
    Use a quality Quantity Surveyor like Depreciator or BMT from the forum here.
     
  3. House

    House Well-Known Member Premium Member

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    100% use the QS, it's their speciality and would be more aware of the complex depreciation rules. It's always tempting to go for the cheaper option but when it's for maximising your potential deductions, that extra few hundred could return you thousands more.

    Also, your accountant is not recognised by the ATO as qualified to estimate construction and other costs.

    Where's your IP? I've heard some charge more if it's in a rural area
     
    Tranquilo likes this.
  4. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    No real difference. Do it after any renos are completed before you rent it. The DS is backdated to when property is first available to lease
     
    Tranquilo likes this.
  5. cheekykoon

    cheekykoon Well-Known Member

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    Thanks! If that's the plan,I'll have a chat with the accountant and get an update.
     
  6. DanW

    DanW Well-Known Member

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    Useful to get it early and put the figures into PAYG withholding variation to increase your monthly cashflow
     
    citystar likes this.
  7. citystar

    citystar Well-Known Member

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    I agree with DanW, get it done soon after settlement for the PAYG Withholding Variation.
     
  8. cheekykoon

    cheekykoon Well-Known Member

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    Hi Alex, IP is 12km from Brisbane. Was quoted 770 plus get for it by BMT. Agency I bought from says its not necessary to do the tax depreciation early, can do just prior to tax file. Also, I heard they say accountant have a deal to do it for much less... maybe its their own network of deals.
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Why is the agency giving tax advice? And how would an accountant do it - would he inspect the premises?

    If not then he would miss a lot of items potentially. Is he a qualified QS? If not then how would he know the value of a particular oven or tiles in the bathroom?
     
  10. cheekykoon

    cheekykoon Well-Known Member

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    Hi Terry, lots of unknown.... i know. I have to quiz the accountant today before I can do anything. Its holidays in Queensland. I don't they open for business today.
     
  11. HD_ACE

    HD_ACE Game-Changer Premium Member

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    If price is your concern, have a chat to @fullylucky. He may have completed his spreadsheet by now and be willing to share with you for a small token.

    Otherwise for the best result and a greater ROI, can't go wrong with bmt or depreciator for maximum returns and proper advice.
     
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  12. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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    I'd ask your accountant to explain his interpretation of paragraph 27 of Tax Ruling 97/25.

    http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR9725/NAT/ATO/00001
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Similar to that last bit, I can help obtain a discount with Depreciator because of the volume being done by my clients.
     
  14. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    They can create a DS based on known quantities such as receipts for renovations for opening values. This is fine where there is no building depreciation left. However an accountant cannot estimate an opening value on existing building.
     
  15. cheekykoon

    cheekykoon Well-Known Member

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    Thanks!

    Well we all don't wish to pay extra for services that we can get for lesser if we just network around a bit right?
     
  16. Sonamic

    Sonamic Well-Known Member

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    Just get BMT to do it. They're the Pros for a reason. They'll get you everything you're due for Depreciation AND the Fee is a Tax Deduction. Win win.
     
    BMT Tax Depreciation likes this.
  17. cheekykoon

    cheekykoon Well-Known Member

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    Yep, the agent misheard it and the accountant clarified those reports are sponsored reports by developer or a deal cut by the developer to all the buyers.

    I'm shopping for a quote for 2 units settling soon.