depriciation scheduler recommendation VIC

Hi All, i am looking to get a depreciation scheduler for my IP in melbourne east area,any recommendations?Thanks

 

How about start with the big names such as Washington Brown, BMT or @Depreciator?

Based on the type of property they can organize for different type of depreciation schedules to be completed that will give you the maximum benefit.

Cheers,
David

 

In Victoria I've used BMT (but they are expensive) and Bell Property and Investment Services (whose price was a lot more affordable).

 

Did you find BMT better than others

 

I am 100% certain Andy but my reading over many years is that they all use the same formulas and the outcome is pretty much the same. I'd love to hear if someone else thinks differently though...

 

I also think the same. After all its not patented formula and if BMT guys are adding some items which other guys are excluding, other guys will also catch up with it.I think BMT has premium pricing because of strong existing clientele.

 

I politely beg to differ but the rules here prevent me from giving you anything that could be perceived as a sales spiel!

The only thing I'll say is that, when it comes to financial products, affordability doesn't solely relate to fees but instead to net value.

 

I have to say I agree. I had a couple of schedules put together by someone other than BMT and they were a couple of hundred $’s cheaper.

I asked BMT if they thought they could beat them and they did by more than the cost of the schedule per annum. So I now have 2 sets of schedules for the same 2 properties!

Obviously I’m not going to say who the others were but I was shocked by the difference.

 

Hmmm I'd like to hear how you are going to be so much better than anyone else under the new legislation.

Please enlighten us all!!

 

I'm happy to, Tyron.

I think the 2017 Budget rulings are only relevant in a very minor way here. It doesn't matter if one is looking at the plant and equipment or the building allowance: different figures are going to be estimated and it's up to the QS to work out how to maximise them.

My favourite story is from a few years back, a client who had used us previously purchased a unit in Mascot. A depreciation schedule compiled by another provider was included with the purchase. He asked what we thought we'd get and, lo and behold, we'd completed a schedule on the same unit type that delivered an additional $2000 in building allowance per year over forty years.

With that one, the 2017 Budget rulings weren't a factor then and they wouldn't be a factor now. I can assure you that the depreciation party is definitely far from over.

I hope the above answered your question without being a sales spiel.

 

I don't even know what depreciation schedule means

I bought my new flats 1 year ago, is it time for that?

 

It may be useful to spend more on depreciation schedule if property is an old one (Assuming expensive depreciator provides more accurate report). For a newly constructed property it may not matter much.

I know someone in Brisbane who does depreciation schedule for $250. I have seen sample reports and the format looks similar to one who charges $800. They do it remotely based on figures you provide.

I got a depreciation schedule done last year for my newly constructed property by paying $800 in Sydney. They asked me the figures such as builder's contract price and how much I spent post construction etc. They then put it all together and gave me a report based on amounts I provided.

They did visit the property but it was useless in my opinion.

In future when ATO comes for audit, it doesn't matter who prepared depreciation report. ATO can ask for backing proofs to see whether you have all the receipts including builder's contract and post construction items.

So, if both cheap and expensive depreciator are going to rely on the amounts provided to them (for newly constructed property) then what is the benefit of paying more?

As long as numbers in depreciation schedule match the amount you actually spent (with proof) on construction it may not be worth spending $800-1000.

Correct me if wrong.

 

Definitely, if it's being used as an investment! Claiming depreciation on any new unit will give you thousands of dollars in tax deductions every year for up to forty years. The amount will depend on the size of the property, whether you've lived in it and other factors.

Okay. Where you're correct is that when the build cost is known (i.e., you paid the builder) then we can't estimate a total cost higher than that. Therefore the total deductions on every depreciation schedule will be the same.

But you want tax deductions and you want them now, right? The art then becomes to take that total build cost and apportion the value as much as possible (and as much as is reasonable while satisfying the ATO) into the plant and equipment items, which depreciate more quickly. There are other ways of accelerating deductions, such as using the low value pool (some cheaper reports still don't offer this) and making sure that items are correctly identified as plant rather than capital (i.e., the category of certain items can be less than obvious, meaning that they will be depreciated more slowly with the building) and even splitting reports by ownership percentage can speed things up.

So, the total deductions will be the same but the yearly deductions certainly won't be.