Depreciation schedule vendor

Hi all, I'm looking for a depreciation schedule vendor to help producing the depreciation schedule report. I wonder whether I need to choose the no onsite inspection plan which is cheaper, or is it better to do it onsite?

I purchased the rental property in 2018, it's second hand property with all electronics requirements in it, I didn't buy anything new and I just keep it's original status

I'm aware that for property purchased after 2017 , the landlord cannot claim on the existing plant and equipment components for depreciation.

I wonder in my situation, is onsite inspection necessary because the existing stuff inside the property cannot be claimed anyways, anyone can please provide your valuable opinion?

Also, anyone tried the low cost depreciation schedule company? I found some online which can do it at around $200 which is relatively cheaper than the others.

https://dkpp.com.au

https://thrifty.tax

Thanks a lot for your input.

 

BMT worth calling. Cheap schedules are like a cheap condom. High risk.

They have a calculator that may assist with determining your potential depreciation claim

Depreciation Calculator for Commercial & Rental Property

 

If you acquired in 2018 the existing plant & equipment assets will be considered used and not likley eligible for Div 40 BUT the schedule will include the depreciation that is not not eleigible. In the future it will reduce the CGT gain. The report will also include Div 43 building elements which can still be claimed

I would not use a cheap QS report. I have seen some appalling ones. A onsite report is generally best advised unleess the QS advises otherwise. eg Age of premises etc

 

I have used https://depreciator.com.au/ for all my properties and they have been nothing but outstanding. My accountant is happy with the format and believes they are as good, if not better than BMT.
cc @Depreciator

 

+ 1 for BMT.

They also provide a guarantee-
‘If we can’t find double our fee in deductions in the first full financial year claim there will be no charge for our services’

 

i think most of the major ones do this now.

 

Yeah. We can usually weed out the ones that won't meet the guarantee during the initial consultation and it's in everyone's best interests that we're honest about that. The borderline cases are pre-1987 properties with prior works that we may or may not value in total at 40 x (2 x our fee).

One of the competitors linked to above states that their guarantee is "to save you three times our fee", and I don't see how they can promise that without knowing the client's overall income and tax liabilities--although, there's no reference to "in the first full financial year", so perhaps they're talking across the forty-year lifespan, which any QS could do while comatose.

 

I've used bmt before, in around 2017 and I found they were ok. They were professional and delivered on time, report was very detailed. Charged me mid 700s. Last week I had to get 2 reports for 2 new properties, so I considered them again, but decided to try a new provider for the following reasons:

1) from my perspective, i only care about how much the total deductible value is - that's what I'm buying in essence. The provider I chose gave me comfort that they are flexible on this number, and also that they felt they could reach my high target after being shown some photos
2) BMT charged 200 more (again in the mid 700s) for the service compared to the one I chose, and was not negotiable despite me being a repeat customer and bringing them 2 more reports in one go. They were also unable to give me any indication from photos.

I suggest to all looking for a depreciation schedule to focus on what you're really paying for - the deductibility total, essentially.

 

Exactly, but you won’t know the difference unless you use 2 companies on the same property to compare.

 

That's right. So some might actually choose to pay for 2 if the numbers are big enough. e.g. if the potential difference multiplied by the taxpayer's marginal tax rate (present value adjusted) is greater than or around the same as the cost of an additional report, one might be wise to get more than 1 report.

But that's not the case for me. So I just guess based on the phone conversation, and also the service fee.

 

I have only seen a small number of cases where a taxpayer obtained two reports from two providers to enable comparison. I wont name the originating QS whose report seemed to indicate deficiencies (and this was the same issue for three unrelated clients) . In each case one provider was consistently more accurate and diligent than the other and the issue reflected in concerns about the construction element AND the plant items. The preferred provider in that case was BMT I also have a isolated example of Washington Brown which also indicates the similiar issue the same provider seemed to miss (fire services and common property construction variances). I cant comment about other examples and other QS firms who could be just as good. We do recommend other QS firms.

For a new build apartment a schedule from Washington Brown or BMT can sometimes be very effective. These companies do a lot of lender schedules for apartment towers. I suggest anyone buying a new apartment ask the vendor who did the construction schedules for the project as that may be the best QS firm to use to save some $$$. This means they already hold construction estimates and unit entitlement % and only need interior fitout details eg flooring, appliances etc. Where a new QS would need to produce all the work at a far higher cost. Or take a shortcut and use a desktop estimate basis. Or omit low value pooling or fail to explain why TWO reports each for 50% could be a better value than a single report shared by joint owners.

One of the major matters a fee includes is support often years later. Larger QS firms may amend a QS report where some "cheapies" do a desktop report and lack support. I have seen cheap reports that literally end after 5 years and where scrapping is just ignored and left to the accountant (which I cant do in many cases) or which require me to enter the data from the QS adding cost to tax services in a few years time (a hidden cost)

IMO I would willingly pay BMT rather than get a cheap desktop report based on some pics. I see some really bad QS reports

 

We are purchasing a rental, transfer of title is meant to occur early Sept.

Have read all suggestions on here, wondering an average cost of Depreciation?

House is nearly 20 years old.

 

You should expect to pay between $500 and $800 in MOST cases.

 

Used https://thrifty.tax and thought they were fine. no issues. hope this helps

 

I have seen a lot and often see issues taxpayers dont. Cheap doesnt mean good. Quick review of sample = eg No apparent use of pooling as aseperate deduction ? Do they advise on each owner having their own schedule v a joint one ? Tax Practitioners Board membership no ? No phone and pricing means it possibly a desktop val.

I try to avoid buying anything that claims to be the cheapest. Or says its "approved" by any agency...The ATO will have issues with their website saying ATO compliant.

 

They are registered tax agents 26036186 TQD Venture Pty Ltd trading as Thrifty Tax Depreciation

 

Do you know if Thrifty (TQD Venture) is owned by Duotax? It looks like their budget, ‘DIY’ offering. But I can’t see why I shouldn’t go with the cheaper version if they provide the same report?

 

Duotax are known for their very competitive pricing. I wouldnt imagine reason for a "budget" version even if the website has a different name. Perhaps a branding issue. Cant say I have seen the "thrifty" report and if its any different. Ask Andy Tran on 1300 185 498

I recommend Duotax and have had no issues.