Your questions answered
The answer in the majority of cases is yes. A Tax Depreciation Schedule can reduce an investor's taxable income, and hence by claiming these deductions, investors can significantly enhance the after tax return from their investment and generate a healthier cashflow..
The best time is usually as soon as possible after settlement. This allows all items of plant & equipment included in the original purchase price as distinct from any other items and/or expenses incurred during the remaining period of ownership.
The Australian Taxation Office (ATO) has determined that a Quantity Surveyor is a "qualified person" to estimate construction costs for the purposes of the Income Tax Assessment Act (1936) (TD 94/83, 13 October 1994. Para 2).
A Quantity Surveyor is an independent professional consultant to the property and construction industries, offering advice to investors, builders, developers, financiers and private clients.
The cost associated with preparation of a Tax Depreciation Schedule varies from firm to firm. Generally, firms charge depending on the level of resources required to produce the reports, the degree of expertise in the area, location of the property and the depth of analysis required. Some firms are notorious for hefty fees and whilst the cost associated with the preparation of a Tax Depreciation Schedule are fully tax deductible, you should obtain several fee proposals prior to the engagement of a firm.
Cost should not be the only factor considered when engaging a Quantity Surveyor. Other factors such as on-going service should also be considered. Your Quantity Surveyors fee should also include services such as answering all queries relating to the schedules from yourself, your accountant or the Australian Taxation Office (ATO). It should also include for minor updates to the reports over a period of not less than 10 years, pending that there are no "significant" changes to taxation laws or to the structural fabric of the depreciable property in question.
Corpred Enterprises offers a vast array of Quantity Surveying services and specialises in the preparation of Tax Depreciation Schedules. At present, we are one of a few specialist firms in this area and we are endeavouring to become market leader, offering both maximum gains for our clients at minimum outlay. Corpred Enterprises works closely with property developers, solicitors, accountants, real estate agents and private clients to ensure maximum returns are realised. We service all areas Australia wide. Furthermore, our office operates seven (7) days a week for both convenience and to accommodate the large volume of workload within our committed delivery dates, we also provide a 24 hour inquiry/help line to answer any queries that you may have.
Any building where construction started after July 18, 1985 qualifies for the "Special Building Write-Off". That means you can depreciate the original cost of the construction. For all buildings, there are a host of Depreciable Assets like water services, floor coverings, kitchen and bathroom assets that may be depreciated.
Yes. The "Special Building Write-Off" can be claimed as long as the renovations were undertaken after February 22, 1992. You can also claim architects and engineers fees. Structural inclusions such as retaining walls and sealed driveways, if undertaken after this date also qualify.
Our quantity surveying and building experience enables us to accurately estimate the cost of 'capital works' as well as all depreciable assets. (For work done after settlement the ATO assumes you will have receipts).
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