If you’re an investor, depreciation is one of the best weapons you can have in your arsenal. It’ll mean you can maximise the cash return you get from your investment property, making it a quick win as it requires very little time put in.
However, before you contact a quantity surveyor to get your tax depreciation schedule in order, it’s crucial that you do your fair share of due diligence. Not all quantity surveyors are as good as each other, so if you want to make the best choice for you, it pays to research. To help you along the way, we’ve compiled a list of the top 5 questions you should ask your quantity surveyor to help you make the right choice. Read on to find out more.
1) How Much Knowledge Do You Have of Tax Depreciation?
It’s all good and well hiring a quantity surveyor, but if they specialise in commercial property when you need help with tax, you’re not going to benefit as much as you could.
As a result, it’s important you ask prospective quantity surveyors about their level of experience regarding the current Australian Taxation Office Tax Rulings on depreciation.
2) Are You Registered and how Qualified are You?
As soon as someone leaves university with a relevant degree, they can call themselves a quantity surveyor. However, you don’t necessarily want someone who’s completely fresh behind the ears.
Before making a hiring decision, find out if your quantity surveyor is a member of the Australian Institute of Quantity Surveyors (AIQS). The AIQS helps its members to stay compliant with regulations and ensures a high level of service.
3) Have I got the Right Type of Property?
The type of property you have can have a heavy impact on your tax depreciation schedule. Changes to how you can claim on second-hand residential properties were introduced in 2017, so it’s tricky for many investors to know whether they can still claim on their investment properties.
Either way, it’s always going to be worth enquiring. Even if you bought a second-hand property after this date, there are still going to be some kinds of deductions available which will increase the return you see on your investment.
4) What do You Include in Your Tax Depreciation Schedules?
To make the most of your investment property, your depreciation schedule needs to be comprehensive, as well as compliant with the ATO.
An example depreciation schedule should include an overview of total deductions, the prime cost, and the diminishing value for any assets within the property. On top of this should be a 40-year projection of the deductions you can make, as well as a glossary of terms.
5) Will any of Your Work be Outsourced?
It’s common for some quantity surveyors to outsource aspects of their process to contractors, site inspectors and other quantity surveyors. Although this isn’t bad practice, it can make their service slightly inconvenient for you and can increase the amount of errors you can occur.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.