A residential quantity surveyor is one of the ATO-approved specialists for preparing depreciation schedules, determining historical and current construction costs, and valuing assets.
Once you’ve decided on the surveyor, ordering a rental depreciation schedule over the phone or the internet is typically simple. A good quantity surveyor will first analyse your property online to confirm its worth, then do all essential property searches, schedule an inspection with your property manager, and conduct a comprehensive examination.
Is it essential to have a depreciation schedule?
When preparing your tax return, a depreciation report ensures that you get the entire amount of tax back on your rental or investment property. Having your investment property maintained by a business that follows the ATO’s schedules will not only ensure that you get your rights, but that they will be maximised to increase your return on investment.
How can I utilise a Depreciation Schedule for a Rental Property?
Once you’ve given your accountant your tax depreciation schedule, they’ll apply the findings to your tax return for that year, as well as any future years. If you don’t want to hire an accountant, you may use the findings to fill out your tax return. Keep in mind that after you’ve decided on a depreciation method from the report, you must use it for all future tax returns.
When Is the Best Time to Buy a Depreciation Schedule for Taxes?
It’s advisable to order your tax depreciation schedule before the end of the fiscal year, which is June 30th, to maximise your yearly deductions.
Even if you haven’t owned your property for the whole fiscal year, you should still order your depreciation plan by June 30 of that year to be eligible for partial deductions and fast asset write-offs.
What Are the Benefits of Depreciation Schedules for Your Investment Property?
There are several benefits to having a quantity surveyor prepare a tax depreciation schedule for your property. The following are some of the depreciation advantages:
The depreciation schedule might mean the difference between owning a property with a negative cash flow and one with a positive cash flow.
A tax depreciation schedule, unlike other property deductions, is a one-time expenditure, and you may claim depreciation deductions without paying money each financial year.
The schedule is designed to help you get the most out of all the advantages available under Australian legislation for both new and older homes.
What does a depreciation schedule for rental property cost?
While there may be a significant difference in quality and outcomes between a low-cost depreciation schedule and a more costly one, the cost difference is relatively small, mainly when the cost is tax-deductible.
A low-cost report may just cost a few hundred dollars, but it will almost certainly need you to view the property and supply a great deal of information. This is cumbersome and costly for many individuals, not to mention that most people have no idea what to search for. These schedules are unlikely to take into account prior repairs and upgrades and the use of low-cost and low-value pooling to get better outcomes.
Top-quality reports may cost a few hundred dollars extra (up to $750 with certain suppliers). These schedules are significantly more convenient for the investor and will provide far more significant results. A few hundred dollars more upfront may result in tens of thousands of dollars in future deductions.
What is included in a depreciation schedule?
Your depreciation expert will assess the property assets and goods and organise them into parts in the report so that your accountant can easily read and comprehend them. There are two distinct groups:
Depreciation of plant and equipment: It includes assets connected with your investment property that have a fixed lifespan and lose value over time due to age and wear and tear. They include furniture, security systems, air conditioning units, and even rubbish bins.
Capital works depreciation: Comprises structural features of the structure, such as additions, expansions, changes, and enhancements. Work on a garage or patio expansion, kitchen renovations, bathroom makeovers, or the construction of a carport, fence, or cemented driveway is all included.
A quantity surveyor may visit the property to verify that you are not missing any things from the depreciation report, and here is where they can help you get the most out of your tax return.
What is the best way to get a depreciation schedule?
Depreciation deductions might help you achieve positive cash flow sooner by lowering your taxable income. Contact us at 1300 313 524 to get a tax depreciation schedule.