Depreciation Schedule Questions

Hello

First time investor here so I am learning

I need to do a depreciation schedule and I am unsure which one to go

My house is still and I built it with a builder - completed and handed over to me September 2016

I have spoken to a few different depreciation schedule people

BMT send out a quantity surveyor which will cost around $750
I asked them some other companies say they dont send one and just go off your plans and inclusions as my house is a recently new house which I built
Their answer was – you get more items on your schedule to claim, the surveyor look at everything possible including locks on windows, bins, council garbage bins, door closers, individual light fittings etc

Where as the other 2 companies I got quoted which was $440 said they dont need to send one because everything is on your building plans and inclusions paperwork, and companies will try to sell you their reasons to send out a surveyor and charge you more when its not required for a newly built house

WHich one do I believe.. do I pay more and get someone in to survey it or do I not?

 

There is no “believing” as it’s 2 different ways to handle a situation.

One goes out and does their own report irrespective of your builders paperwork.

The other will rely on builders report and build a schedule from there without verifying.

 

If the total cost of the property is known, and in this case it is, that cost needs to be used as the starting point. So the hard bit is done. Then it is a matter of putting values against the Assets: appliances, floor coverings etc.
We offer both options i.e. we will send someone out if people prefer, or use the information on the contract (plus photos which most people have anyway).
Scott

 

so in saying that, if the company who offers to send someone out will take small items into the schedule as mentioned above which are not on my build paperwork such as window locks, light fittings, bins etc would this be more tax beneficial for me vs forking out an extra $300?

 

No idea but it’s a more thorough approach.

 

Go with an inspection Pat, if that makes you more comfortable. We'll always inspect a new property if the client wants us to - better profit margin for us.
Regardless of whether the property is inspected, you won't find window locks as an Asset in the Dep Schedule. They are part of the building. So are recessed light fittings.
Scott

 

what is an extra tax deductible $300? If they find an extra building item worth say $1000 that would be another 2.5% or $25 deduction over the next 40 years for example

 

Terry is right, too many people try to save a couple of hundred dollars and miss out on thousands of deductions because of it. I did it myself in the early days and the numbers didn’t look right so I paid for another schedule and literally had the figures doubled.

BMT are excellent and so is Washington Brown. I personally only use Washington Brown these days as I think their results are best overall.

 

I am also in same situation. BMT $800 vs other $499. Can I get advice from members who have used services of BMT and another if it's worth paying extra. I reckon, Investors who have used only one provider would not have this idea.