If you are an investor, you must be reaping the benefits of depreciation every financial year. When you claim depreciation, it will assist you in enhancing the cash return from your investment property. It is necessary to calculate depreciation on rental property accurately. Depreciation has emerged as an instant victory for investors in the form of non-cash deduction. Additionally, it requires the least effort from the owners’ end. Many investors in Australia seek the services of quantity surveyors for preparing their tax depreciation schedules. It is important to hire a diligent quantity surveyor who will ensure maximum cash deductions.
Here are a few things that you must ask your depreciation quantity surveyor:
When you appoint a quantity surveyor, it is crucial to verify that whether the concerned person is a member of the Australian Institute of Quantity Surveyors or not. It is worth noting that AIQS is a leading industry body that helps its members to comply with industry regulations and Australian Standards. The compliance will lead to a high quality of services. Additionally, you should also verify that the firms have been registered tax agents. The expert quantity surveyor must be registered tax agents in a bid to complete tax depreciation schedules for the concerning investment properties. The tax depreciation quantity surveyors should meet this guideline so that they can prepare your tax depreciation schedule effectively.
Expertise in tax depreciation
All quantity surveyors may not be having a specialization in tax depreciation. It is a tax depreciation specialist whom you should trust as he possesses the required knowledge of present Australian Taxation Office ruling pertaining to depreciation. As they have detailed industry knowledge, an expert quantity surveyor can assist their clients claim maximum deductions. They will help in reducing your tax liability and achieve a higher return on your investment.
Ask if your property is too old
Some vital changes have taken place recently for claiming depreciation on second-hand residential properties. The changes took place following the 2017 federal budget. The changes have left many investors wondering if they still remain eligible to claim depreciation for their investment properties. Meanwhile, you must always ask your quantity surveyor about what depreciation deductions will be available. If you have bought your property second hand, there is a strong likelihood that there will be some depreciation deductions available. It may be available in the form of capital works deductions, earlier renovations, etc. Claiming depreciation on property is beneficial and can reduce your tax burden extensively.
Things to be included in tax depreciation schedules
If you desire to claim maximum deductions, your tax depreciation schedule must be comprehensive and ATO compliant. It might also cover you in the scenario of an audit from the ATO. The tax depreciation schedule includes an overview of the total deductions available.
Make sure that you ask the above things from the expert quantity surveyor prior to hiring. A professional quantity surveyor will prepare your tax depreciation report in the most effective way and reduce your tax liabilities. Additionally, you may also ask him if he outsources any of his work. It is because some tax depreciation companies outsource some parts of preparing a schedule to contractors. Investors will be allowed to claim deductions on plant and equipment assets they buy and directly experience the expenditure for.