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Do You Really Need A Quantity Surveyor?

Every team engaged in construction has different specialists with different skillsets. One of the most important and interesting roles is that of a quantity surveyor. This role combines the knowledge of engineering and finance. People argue whether all construction projects need a project surveyor or not. In our opinion, every project should have one. But there is another area of work where the role of quantity surveyors is even less understood.

Tax Returns and Quantity Surveyors

Australian tax rules state that owners of investment properties should file tax returns. This process requires qualified and experienced tax depreciation surveyors. So, let us properly understand the process of property tax. This way, the importance of quantity surveyors can become clearer as well.

When you own a property, there are two types of additions to that property.

  • The first is capital goods, which indicates the permanent structures.
  • The second refers to the extra items which are removable.

Good tax depreciation quantity surveyors can list all the elements of your property. After this, they distribute them into these two categories.

The Contribution of Tax Surveyor in Filing Tax Returns

The reason we need quantity surveyors for this is not only to create a list. With their training and experience, they would be able to put the correct pricing on each item. They can also calculate the depreciation allowable on each item. This would be according to Australian tax rules. Based on the quantity survey, the quantity surveyor tax depreciation list gets created. It is then made part of the owner’s tax returns. The right work by the quantity surveyor would ensure that tax is not paid when unnecessary. It also ensures nothing important is missed during the filing of returns.

The Importance of a Quantity Surveyor

This was only an example of a specific job that is impossible without a quantity surveyor. If a non-qualified person does it, there could be financial and legal implications. But if we talk about general construction teams as well, we can’t ignore the role of a quantity surveyor.

Conclusion:

The cost and efforts involved with hiring qualified Deppro quantity surveyors might be high but they get repaid because of their contributions. This holds true not only in general construction work. It is especially true in specific jobs like tax returns and depreciation lists. The benefits of hiring a professional quantity surveyor are most usually in financial aspects. But they also help in ensuring that the technical aspects are correct too. If your project team does not have a quantity surveyor yet, it is high time you consider it.

Depreciation and Your Investment Property

When a person buys an investment property, the intention is to generate an additional revenue stream from the rentals. But the process of looking for a good tenant and setting them up is not that easy. Then there is the issue of regular or ad hoc maintenance expenses, which eat away at the rental income. On top of that, there is the matter of paying taxes on the property and its income.

The Australian tax rules have made it possible for homeowners to get some relief from the taxes they need to pay for their property and its income. The rules regarding depreciation residential rental property provide for a reduction on tax on account of the depreciation of the value of the property.

There are two ways in which the deduction can be calculated. It could be either on the capital works or on plant and equipment. It is required that a complete tax depreciation schedule for rental property is created by the owner. This is a specialized job for which experts need to be brought in.

There are several companies which offer this kind of service. They employ qualified quantity surveyors who are trained to create this kind of report. It requires detailed measurements and counting of each and every small and big element on the property. Based on those data points, the complete rental property depreciation report is prepared. This is then used in and submitted along with the tax returns of the property owner.

There are some things to be kept in mind when claiming tax depreciation on investment properties. Here are some of them:

  1. There are cutoff dates for properties laid down. For commercial properties, the commencement date is 20th of July, 1982. For residential properties, the date is 15th of September 1987.
  2. For plant and equipment assets, the effective lives of each element would be taken into consideration. ATO has laid down a detailed list for this, and the tax returns would be filed accordingly.
  3. The individual effective life would also depend on the type of property where the plant and equipment asset has been used.
  4. House owners need to keep in mind that the depreciation rules would only apply if the property is not being occupied by the owners. Therefore, it has to be a rental or investment property for the depreciation rules to be allowable.
  5. The above rule can be relaxed if the property is purchased and owned by a trust or a company instead of an individual. In such cases, the owner (individual) can move in as a tenant of the trust and claim depreciation.

There are several good companies who can help you create the depreciation report for your property in line with the current regulations. They have teams of qualified technical specialists who would help prepare the depreciation reports and file the tax returns accurately.

Should I Buy an Investment Property with a Swimming Pool?

When you are looking to invest money into a property where you do not plan to live but rather rent out, you need to strike that sweet spot where minimal investment and maximum returns meet. Your property investment returns must be greater than the upfront costs and the recurring costs put together.

How Wise is it to have a Pool on your Investment Property?

Let us take an example of a swimming pool in the backyard of your house. Who doesn’t like to imagine a lazy sunny morning spent lounging by the poolside? Is there any greater joy than a swim in crystal clear blue water? A pool adds a lot of value to a house, for the owner as well as the resident. But we need to remember that a pool comes with several costs.

The Cost of a Swimming Pool

The cost of building a pool might be a one-time investment, but the maintenance of a pool is quite costly, and those costs are repetitive. If you have a traditional swimming pool, then cleaning of leaves and other debris would need to be done manually. But for more modern self-cleaning pools, the costs become higher. The property report for a house with a pool would have a large chunk of the expenses earmarked for the pool.

What Australian Tax Depreciation Rules Say?

Having read so far, you might be tempted to think that a pool on your property might not be such a great idea after all. But there is another important factor to consider – the Australian tax depreciation rules. As per these rules, several elements of the cost of building and maintaining a swimming pool can be set off against depreciation, and tax deductions can be claimed on them.

This is how it works. When a house is constructed, the money spent on it could be broadly divided into two categories. The first is capital works, and the other is plant and equipment. Capital works would include the fixed part of a building, like the walls, floor, and wiring etc. Plant and equipment would include removable parts of the property like smoke detectors, upholstery, electrical appliances etc. A complete list of both these types of depreciation expenses needs to be made by a certified agency like Deppro using an investment property calculator. This list is then submitted along with the tax returns and deductions are availed on tax on the basis of the depreciation calculated. Many elements of the cost of a swimming pool construction can also be included in this list and deductions claimed.

Final Thoughts:

On the whole, you need to consider the location of your property, the cost of the pool, and the amount you can claim later as tax. After considering these factors, you can decide wisely whether you should buy an investment property with a pool or not.

What You Need to Know About the Legislation Changes to Rental Property Tax Depreciation Claims

It’s always quite confusing to adapt to new changes. Similar to the altered legislation to the rental home returns which were observed in 2017. It has been tracked that numerous investors and rental property owners have issues regarding the claims available for them.
To everyone’s relief, what is worth appreciation is that the items under the Capital Works such as the swimming pools, toilets, windows, foundations, walls, and ceilings can be claimed for deductions just like before. There are no changes made to that category.
The alteration has been in Division 40 which includes the subparts of Plant and Equipment category including the electronic appliances, carpets, alarms etc. These are the assets which are extra, in other words, which aren’t a part of the built of the property.
Which Properties Got Affected by The Change?
Well, when summarized, it can be said that the deductions for the above-mentioned category that is the Plant and Equipment is not applicable on the condition that the property was made second hand after 7:30 pm on May 9, 2017. All the investors who have invested in the second-hand property before the mentioned time and date can claim returns on depreciation residential rental property as they used to before.
Also, if a new Plant and Equipment asset is bought after the specified date, it is applicable for claims until the asset’s life remains effective. Lastly, another notable fact is that the investors residing in their building before July 1, 2017, do not have to think about the changes made in the legislation as they are exempted from it.
How to Claim the Right Returns Efficiently?
Sometimes technical terms become quite difficult to understand and analyze and hence it is better to seek professional help rather than trying to be the jack of all trades and master of none. Hence, creating a tax depreciation schedule for a rental property can be extremely easy if done by an experienced, professional quantity surveyor. A person with that profession knows exactly what is to be done for your property and will help you extract maximum benefits by giving you a clear-cut view of your costs, expenditures, and returns.
There are a number of companies providing professional help to people in need of a good tax depreciation schedule and hence you can look out for one such service provider.
The main advantage of choosing this way is that they have immense knowledge about the concerned topic and they are aware of such minor details which can fill up your pockets and make you feel rich by just paying a humble fee for the service.
What after June 30, 2017?
For your information, even if it is past June 30, 2017, you are eligible to calculate depreciation on rental property and submit a tax schedule with your tax returns for 2017-2018. Hence, it’s a win-win situation for many of the investors.
Deriving complete information of such legislative changes isn’t a cup of tea and might leave you confused and unsure of your action despite the hard efforts. Thus, a little bit of assistance and help is never harmful.

Is it Worth Obtaining a Quantity Surveyor Report?

Have you invested in a rental property in Australia which was built in a year preceding 1987? If so, then things might be different for you than for those who bought their property in the following years. You may be confused in regards to getting a tax depreciation report from one of the qualified tax depreciation surveyors in your city.

Is obtaining a quantity surveyor’s report worth the effort, time and money? Read on to find out.

What Does a Depreciation Schedule Involve?

A quantity surveyor is a dedicated professional who works on depreciation schedules and the capital allowance of investors. When they complete both, it includes two essential elements: equipment depreciation and capital work deductions.

What Is Capital Works Deduction and Why Is It Important?

Capital works deduction is a form of tax deduction which relates to the structural aspects of a building. These include irremovable or fixed assets like tiles, doors, sinks, windows, walls, roof, etc.

Because it is next to impossible to remove these assets, capital works deduction, in the tax depreciation reports, assumes its importance. This prevents an investor from feeling the pinch on their finances at the subsequent stages.

Is there any Hard-and-Fast-Rule Related to Quantity Surveyors which one Needs to keep in Mind?

For the successful generation of these reports, it is imperative that tax depreciation quantity surveyors, who undertake the responsibility, are registered tax agents. This is all the more important in view of the fact that the information in the document relates to particular tax advice.

How Getting A Quantity Surveyor’s Report Helps?

According to the current version of tax legislation in Australia, any residential or commercial property built before September 15, 1987, and July 20, 1982, respectively, are not eligible for deduction.

As a result, an investor may not even consider the need to obtain a surveyor’s report if their date of purchase of property does not make them eligible for it.

However, it is a good idea to enquire about the possibility for a deduction, even if the property in question is 100 hundred years old. Owners of old properties carry out renovations more often than not, and this makes an investor eligible to make depreciation claims after its purchase.

A new buyer can file a claim for it in the event the previous owner carries out any repair or renovations on it after the aforementioned dates for residential and commercial properties.

So, as you would have come to know, getting a depreciation report is your best bet to make a claim for it in a timely manner.

Whether it is ATO guidelines or other tax depreciation laws in Australia, things keep changing from time to time. Therefore, it is a good idea to get in touch with depreciation service firms such as Deppro Perth. While you may spend a little in terms of fees, the dividends it may pay can make it worth the investment.

How is Depreciation Applied Following Natural Disasters?

Natural disasters are one of the leading causes of damage to properties. Situations involving such disasters often necessitate owners to substitute various assets. At times, depending on the degree of damage, they may also feel the need to rebuild their properties.

Though it can be a challenging task for both owners and tenants alike to deal with such a situation, there are ways to mend it. As it can be expensive, owners consider linking it to tax depreciation schedules. If you do not know much about depreciation, here are the things you need to know to maintain depreciation deductions for damaged properties:

Assessment and Depreciation of Disaster-Stricken Properties:

According to Australian tax rules, it is important on the part of an owner to submit a report on a damaged property to claim the expenses. Regardless of whether you repair, replace or improve an asset, you need to submit the property report to the concerned authorities.

Furthermore, the consequences may differ slightly, based on whether the property in question is an insured property or an uninsured one. Depending on whether or not the inspection of a property has been done, there can be two set of possibilities for an owner which are as follows:

A Quantity Surveyor Has Inspected the Property:

In this scenario, the owner can make adjustments to the original report and apply it without spending a huge amount of money. This also saves a lot of time and hassle.

A Quantity Surveyor Has Not Inspected the Property:

This can be a little tricky to handle. In this case, a property owner needs to contact a quantity surveyor for a thorough inspection of the property as soon as possible. The rationale behind it is to prepare a property report in a timely manner. When one fails to complete this quickly, it can land one into various complicated circumstances.

If you repair an asset, you can claim the deduction of the expense for it, irrespective of whether you have insured your property. The capital allowance values and the individual depreciable asset will need adjustments for the replacement of insured properties. For uninsured properties, the residual value of the replaced asset will cease to exist and forecasting of depreciation of new asset will follow.

What Should An Owner Do to Get the Right Depreciation Rate for Their Property?

The extent of ATO depreciation rates varies from case to case, depending on the kind of damage from a natural disaster.
In order to understand the ATO guidelines, it is important to gain an in-depth knowledge of various aspects related to filing the Australian tax return. You need to reach out to an expert for information about the scope of maximizing the future, present of previous depreciation claims.

Conclusion:

The preparation of the property report according to the ATO guidelines is your best bet to claim the depreciation expenses in your tax return with success. Unless you are an expert in this field, you should avoid taking it on your own. It makes a lot of sense to assign the task to a qualified professional with years of experience in this connection. This will help you to be on the safe side and prevent the possibility of getting into any legal issue.

Tax Considerations When Investing in Australian Properties as an Expat

Investors invest in Australian property for a number of reasons. Among the other advantages, such as the location and stable investment options, tax advantages constitute one of the primary reasons for the decision.

That said, there is a different set of tax laws for Aussies who live overseas. Does it make it a less attractive option to invest in the properties in Australia? Certainly not, if you make some fundamental considerations before proceeding with your investment decisions. Read on further to find out more about these tax considerations.

Key Tax Considerations for Non-Resident Aussies before Investing In Australian Property

  1. Tax Deductions: If you rent out your newly purchased property in Australia, you can claim tax deductions relating to the costs of maintaining it. This includes both cash and non-cash deductions.
  2. Depreciation: In layman’s terms, tax depreciation is a form of tax deduction which is concerned with the reduction in the renovation and improvements of rental property. You can claim it on your tax filings in connection with your income. It considers the fact that certain improvements such as carpets, kitchen cupboards and curtains that you make to your property on rent are likely to diminish in value over time. This generally happens due to wear and tear.
  3. Negative Gearing: Negative gearing refers to a kind of financial leverage wherein an investor borrows a certain amount of money with the objective of owning a piece of property to generate income. Normally, the piece of property in question is greater in value than the income which is likely to trickle into the wallet of an investor due to the investment.

If you are seeking ideas about claiming depreciation on investment property based on negative gearing, you can use this concept to cut down your losses with respect to your other income sources. This will help you to minimize your overall tax liability and taxable income in a year. Whether you are a native or non-resident Australian, you are entitled to receiving the benefits of negative gearing to reduce your losses.

  1. Capital Gains Tax: Sometimes the value of a property may hit the upward trajectory owing to various reasons. If an investor holds a piece of property for at least twelve months and decides to sell it thereafter, they become eligible to claim the capital gains tax. It involves one’s marginal income tax rate and provides a tax discount on 50% of capital gains to Australian residents. Unfortunately, if you are not an Australian resident you do not receive the benefits unless you qualify for it by meeting certain tax laws.

Conclusion:

When it comes to dealing with Australian tax laws, the wise thing to do is get in touch with an expert from a reputable depreciation service firm such as Deppro. Irrespective of whether you are a resident or non-resident, do not forget to consult the experts from a reputed firm before filing your depreciation claim to be on the safe side. They can be the real guardian angels for you when you are in a state of a fix.

How Does Depreciation Add Value to Your Investment?

Every investor invests their wealth into a property to earn profitable returns and this is a story prevalent since years. However, this becomes a little tricky with older properties such as an older building. Due to wear and tear from time to time, its value diminishes over time. Wear and tear of a property is a constraint that is considered at all times when you plan to sell out a property. Depreciation tax benefit serves as one of the valuable means to promote the value of commercial or residential property for investors.

If you have invested in a property of late, depreciation can help you to not only retain its value but also get you more out of it. By lowering the overall tax liability, you can save hundreds to thousands of dollars every year on your taxes.

Read on to know more about how you can get more out of tax depreciation investment property.

Tax Depreciation Adds Value to an Existing Building or Structure:

It is important to bear in mind that tax depreciation does not enhance the value of land. It maximizes the value of a property, especially an old building which is subject to wear and tear. Because it may necessitate renovation or maintenance at the subsequent stages, things can get expensive on the part of an investor. Tax depreciation on such properties can help you keep things under your control in terms of charges involved in repairs or renovation.

Tax Depreciation Does Not Involve Any Upfront Payment

Being a noncash deduction, depreciation does not necessitate the payment of upfront charges. However, to overcome various legal hurdles, it is imperative that you gain an understanding of requirements related to depreciation. This will provide you with the right idea to improve the cash flow of your investment.

Tax Depreciation Helps an Investor Conceal a Cash-Positive Rental:

Depreciation has an interesting spin-off. To elude the possibility of paying an extra amount of money, you can use the tricks of the trade linked to the Australian tax depreciation. By following this simple rule, you can make cash-positive rental look like a loss on paper. Of course, you need to reach out to the right consultant to take advantage of this feature.

What Should You Do to Reap the Benefits of Depreciation?

If you wish to enjoy the positives of depreciation on investment property ATO, the most important thing you need to do is follow the rules. This will help you keep abreast with the ways in which you can benefit from depreciation in the best possible manner.

Because it is easier said than done to deal with the ins and outs or the technical details of the rules related to depreciation, you should consider hiring a professional. Think about consulting an accountant to ensure that your practices are in line with the rules. This is the sure-fire way to benefit from depreciation as an investor.

Everything International Students Should Know about Doing a Tax Return in Australia

Tax is always a matter of stress, and for international students, it can become a hectic scenario. Taxes are something that are far from pleasant and may always cause a strain for students. Most of the students in Australia look ahead to the tax time because they expect to get their money back after they complete their tax returns. However, if you have to work on a student visa for 20 hours or less than that you are exempted from paying taxes, to prepare yourself for the Australian tax return. Here in this post, you will gain a brief insight into how can you can go about with the procedures.

Do I Have to Abide by a Tax Return Policies?

If you are working and earning in Australia, then you are liable to file your taxes. Students who are living in Australia for more than six months fall under the tax paying threshold. However, you can also come across certain situations which will restrict you from paying taxes or you may get tax deductions. You must inform the ATO (Australian Tax Office) in that case.

When Can I File My Taxes?

The period for tax return filing is from July 1 to October 31. Individuals who fall under the income tax category have to file their taxes within this duration to avoid any troubles later. Working professionals in the country must abide by this rule so that they have a smooth tax return filing without having to go through the hassle and paying fines which might become difficult for international students. Their job might be at stake if the proper steps are not taken while filing tax returns.

Procedures for Lodging a Tax Return

In the online age, everything is possible sitting at home. Students can log in to myTax browsing through the website by ATO. Further, you can create an account under myGov and link it with the ATO website. Make sure you go through with an authorised tax agent and lodge your paper on the tax return Australia. Moreover, you can use the Tax Help Program which works for training volunteers and help people on how to go about for their tax returns.

International students require their TFN-Tax file number, photo proof, and their income statement. Generally, by June 30, employers present their employees with the income statements and entail everything regarding how much you earn and other details about your work.

Conclusion:

After you have filed your taxes online, you will need to wait for about two weeks to get your refund. If you are a university student, then you can take advice from the economic service agents from the university itself. They have ample information to give you the right idea on tax filing and returns. If you have some queries regarding filing your tax returns, you can call at the Deppro contact number for quick services.

Why Quantity Surveyors Are the Life of the Party

Popular with the name of “construction economist”, quantity surveyors are the best partners who help you to extract every single penny of profit from your investment property. Along with the cost-efficient planning for your investment, another important function of QS is to facilitate maximum depreciation returns for your property. Tax depreciation quantity surveyors make your investment experience a profitable one.

Who are quantity surveyors?

In layman language, quantity surveyors are professionals who assist you in the construction and maintenance costing of your investment property. They refer you to all the other parties associated like architects, accountants, engineers etc. Facilitating the schedule for the depreciation assets for tax purposes and estimating costs and returns are some of the major functions performed by them.

Benefits of Hiring Tax Depreciation Surveyors

Though there are a number of benefits which can be availed by appointing tax depreciation surveyors for your assistance, the major ones are as follow:

·      Depreciation Schedule:

A depreciation schedule is a complex report that has all your depreciable assets listed on which your returns for the same are calculated. Some investors might make these schedules themselves, but it is beneficial to appoint a professional quantity surveyor to form detailed and errorless schedules. Deppro quantity surveyors also provide such services.

A quantity surveyor aims at helping you to derive all the possible benefits from your property in the short term as well as long term. By giving the responsibility to a professional, you free yourself from the confusing burden. For a single year, the derived benefits might seem less, but when combined and totalled, you can save thousands of dollars over the years.

QS will prepare a depreciation report after inspecting every single depreciable property and by measuring and noting their values. This will carve out the exact construction cost of your building and of all the assets including equipment etc. Once all the information is collected and verified, a report is generated and split categorically under the building, plant, and equipment costs.  This depreciation report can further be sent to the accountants for processing.

This report will help you gain returns on your property against the annual income. A small amount of money paid to the QS would help you derive benefits for decades as the life of the accuracy of a depreciation schedule is 40 years. So you can keep enjoying the long-term benefits over the years.

·      Financial Benefits:

As the schedule can be used for up to 40 years, major deductions can be made in the taxable income over the years for profitable investments. Thus, as an investor, you should be well aware of the derivable profits of your property to make sure that you are being an effective one.

Conclusion:

Thus, a quantity surveyor is considered to be the life of an investment party for no wrong reasons. Many people tend to realise its importance during the later years of investment, whereas, taking the assistance of one in the initial stages can help you save back those important dollars which you might need to recover from the initial establishment expenses and losses of your investment. Hence, it is important to make a wise choice.