Depreciation schedules- Are they all the same?

paul

some are just lazy i think. same schedule didnt breakout the low value pool. it had been summarised with the other capital allowances so had to break it out yourself. was truly an awful schedule.

 

do you mind telling me what the quotes were? you can pm if you like

Cheers, Elives

 

Prices can vary based on many factors. I have had two clients with acquisitions in sites BMT had appraised for the lender. They charged a far lower fee to update for the specific unit fitout based on pics. If they had gone to another QS it would have been a full price job.

 

BMT: 715
WB: 660
Depricator:605
all GST inclusive.

 

I've heard of them giving a discount from a referral as well.

 

Anyone able to differentiate the services of Depricator, BMT and WB when tried to get quotes from them OR used their service? Eg someone covers this and dont cover that kinda info?

Is it fair to just go with the one which has cheapest fees out of three if the claim/annum is similar?

 

IMO there can be differences but this is hard to determine. There are very few examples of taxpayers getting more than one report so its impossible to compare based on deduction results. That said I have seen three examples of taxpayers who have found differences by having comparative reports and the differences were greater than 10%. BMT is my preferred provider for a new construction based on experience . I have consistently found BMT reports to excel in terms of support, service and quality. They do cost more (a little) but remain my preferred firm. This costs is a reflection of the size of their team that supports their services. They have a strict process for onsite attendance which IMO appears to result in less omissions and better reflection of item value some clients have observed with some reports that are cheaper.

For apartments I would always consider both BMT or WB. Its not uncommon that they have assisted construction estimates for the build and have partial data and only need specific interior fitout information.

I have seen countless "cheap" reports and I will recommend you dont do it. Some end at 5 or 10 years which is illogical and a waste of money.

The other caution i give is about accountants who re-enter a QS report into their own software. This is a bad idea. It will reduce future deductions. And who pays for this extra time ? Its unnecessary.

I earn nothing from any QS firm.

 

Hi all, i am being charged 220 for an update to my depreciation schedule. Is that reasonable? In the past this same company only charged 55 per variation. Not sure why this is so much now.

Edit: i got them to change to 165+gst, still high from before. Any insight?

 

The provider considers it reasonable. It depends what was being asked. Time is money and these days a hour of time costs more than several years ago.

If you asked me to modify and deal with it to save $220 I would need to reenter the LVP and Div 40 + Div 43 and then possibly new assets. It will cost more. I sometimes see extensive new costs incorporated and would think it fair to charge a fee. I would think its likely at least 30mins ++ for them to do this. But I am just guessing and some may take much more time. I have seen amended reports with $15K of write offs and complex new additions too. And terrible client information.

I also get clients who expect a free tax variation. Wont happen unless we made a error. If we can easily vary a prior year it still takes 10mins just to lodge the one off and 5mins to make a change. We only charge $55 as a gesture. If we didnt prepare it originally it costs more as we need to renter the original data to then amend it.

 

At those prices, it could be us.

If so, to update a report, it could be next-to-no work (and therefore free), it could be a little bit of work (maybe $55?), or it could be somewhat tricky ($220 or even more for a full renovation and scrapping schedule). It depends on what needs doing: what sort of items, how many assets, does anything need removing from the original report, has our software changed so significantly in the last ten years (i.e., since the original report) that it's almost like building a new report? And so on. We charge according to the scope of work.

Regardless of who the provider is, I'm surprised that they didn't explain their fees. If it was us, let me know.

I do know that some providers (one of them being a major provider) don't update reports at all, and will either tell you to take any costs to your accountant or charge you for a brand new report.

 

It wasn't us, for the record.
We've never charged for simple updates and probably do around 5 per day - more in tax season.
If it's complicated e.g. a significant reno and some mucking around, we might charge a nominal fee.
As Paul said, it's up the provider what they charge - time being money.
Scott

 

Hi @Daniel007

Both BMT and Washington Brown are reputable providers in the schedules and you cannot go wrong with either options. I would suggest you enquire if the additional services are going to come with a fee in future dates.

Also, it doesn't hurt to ask for guarantees on the deductions since that is basically what you're paying for.

 

Thanks @BMT Tax Depreciation , @Paul@PAS and @Depreciator.

I provide all the costs down to the cent in a neat list of two parts: A detailed list of exact materials and their cost next to them. Then the exact labour charges in the second section. Put it into an excel and shared with a total. In the past this same property with similar has cost me $55 for variation as it wasnt a full blown renovation and I already had the same property originally depreciated by them.

I just think I got someone who tried to overcharge me. I got her manager and he sent me a super nice email pulling it back to 55 but advising that in future it might change. I am going to see how I go in the future and either stick to that same company or find someone else in all honesty.

 

$55 buys 10mins of my time. In that 10mins what do you get ? Enhanced deductions ? Review of your expected changes and they may determine write offs, pooling or other means to accelerate the deductions. Scrapping issues perhaps. I have seen deductions for QS reports of as much as $80K in a single year...You want a good report that is reliable to maximise that. eg Updated for strata works may involve site info and some further details. That would not be $55. I would argue any QS that offers that for free is underselling themselves. But I would also argue that charging a excessive sum each change is not viable for long term satisfaction.

One of the services I would introduce to disrupt QS deductions I was considering before 2019 was supplying it on instalments over time. NOTHING up front. Many new buyers dont have the cash and its a good selling proposition. Its 100% free. but you dont get a copy. Only I do. If you want the report I will sell it based on a sliding scale that reduces over time. If you leave you get nothing unless you buy it. I pay the QS annually as (say) 75% of the fee so its win-win vs a fixed fee upfront model. Each year the schedule is updated and maintained for say $165 a year IF a change is needed. Add assets usually means scrapping or end of life for others. When events occur they update the report (eg convert to a tax deferred CGT report) and yes we pay them to do that....Discount for multiple properties eg $175 for 5+ $200 for 2+ ?? For all the crap reports out there a review and rework may even produce extra benefits. eg Who reviews their Div 40 assets for end of their effective life ?? Almost nobody. Its a hard issue to "read"on most reports and few clients would look...and I dont know if the assets are still live or not.

 

Another issue I considered is allow a large QS firm to create a inhouse tax agent service for property focussed tax services so the plans above could also be delivered ""inhouse". It could also do company, trust and personal tax services and would focus on property owners. So far QS firms are "limited"in their tax agent services but that is only because nobody has gone further.