Hi everyone I am a bit confused of whether the expenses we pay for the surveyor to prepare the depreciation schedule is fully deductible or not. I thought you can claim 100% of the of expense in the year that the depreciation schedule was prepared. But someone told me that it is claimable over 5 years. Can someone confirm if you can claim 100% or is the expense spread over 5 years? (References to legislation/regulation will be appreciated too.) Thanks Roshy
You can 100% deduct it in the year you paid the quantity surveyor (or other suitably qualified person) to prepare the report https://www.ato.gov.au/Individuals/Ind/Rental-properties---claiming-capital-works-deductions/?page=9
"Someone" is wrong. It's an expense incurred in managing your taxes and therefore fully deductible. Out of curiosity, is the someone an industry professional?
As Chris @ BMT says - Important that the cost is not a rental deduction but claimed at Item D10. This allows the taxpayer with the highest income to pay the cost and claim the deduction rather than it being shared. Some rental costs may also be claimed at D15 and avoid apportioning too... Investment subscriptions, publications etc and the like. ie costs that relate to all rental income rather than a specific IP. It seems trivial but claiming in these located means adjusted taxable income isn't affected. Rental losses are added back to ATI. With HELP Debts, 2% high income tax and 2% medicare levy s/charge that can add up.
