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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.

How to Maximise Depreciation for Investment Property

One can consider depreciation of a property as a simple deduction on the actual worth owing to the ageing and wear and tear of the property that one owns. It can be termed as the deduction that results out of overtime assets. When it comes to investment, even the most experienced investor tends to overlook the benefits of a depreciation report. While there are accountants for a majority of tasks related to the calculation of taxes, there is hardly anyone who pays attention to depreciation schedule for investment property.

Property Tax Depreciation

The value of a building goes down as it gets older. This is because, in the majority of cases, such buildings show the signs of wear and tear. According to Australian Taxation laws, and the Australian Taxation Office (ATO) in particular, a property owner can claim depreciation if they generate income from their property.

Tips for Property Tax Depreciation

While your accountant can take care of all the aspects related to your business, they are likely to miss out on a depreciation schedule for investment property. After all, it is a payment which the administration owes to you. Though all accountants never overlook the matter, a majority of them prefer to have it handy while preparing your tax return. So, it is a good idea to reach out to a quantity surveyor for an assessment of your property.

Do Older Properties Offer a Good Depreciation Value?

Contrary to the notion that older properties have no depreciation value, the truth is that every property has some sort of depreciation value if it is used by its owner to generate some kind of income. Though the depreciation of a new property is much more compared to an older one, the latter can also carry a greater value than by virtue of updates and renovations.

Why Attach Importance to Tax Depreciation for Your Property?

On an average, about 80% of investors do not mind promoting the depreciation deductions. If you happen to be one of them, it is high time you made efforts to maximise it as far as possible. What’s more, the ATO has a provision wherein it allows taxpayers to go back to two previous tax returns and amend them to claim deductions. So, if you haven’t been claiming depreciation on your property, utilise it to your fullest advantage.

What to Remember for a Higher Yield on Investment Property?

An important thing to remember in connection with depreciation is that a majority of homeowners forget to take renovation into account while filing their tax returns. With every renovation, there is also the possibility of the existing assets being replaced by something new. And this makes for a cogent reason to qualify for depreciation. The ATO provides for claiming the remnant of value for depreciation in such cases.

Never miss the opportunity of having a quantity surveyor inspect your property in accordance with investment property depreciation rules. Make sure that they document each and everything as the ATO is likely to take their report into account. Once the renovation is done, ensure that the same surveyor takes a look at the property and notes down the details of it to determine the assets that have been removed or replaced.

Final Thoughts:

As a standard rule, remember to only get in an experienced quantity surveyor when you plan to get your depreciation schedule done. While there are other low-cost DIY options that you can explore as well, you may eventually end up spending more. Furthermore, the remuneration of a quantity surveyor, even as it proves to be more than that of your liking, is 100% tax deductible. Thus, even if you pay them a higher fee, it wouldn’t hurt you as you would get it back.

Working as a quantity surveyor; their job in 4 points

“What do you do?”

“I’m a quantity surveyor.”

It’s common for blank stares to follow this statement. Quantity surveyors don’t get as much of the limelight as accountants, engineers, or architects but their job is a crucial part of any investor’s world. Here’s 10 more things to know about them.

 

  • They’re well educated

There’s a lot of work that goes into becoming a quantity surveyor, starting with going to university. For example, there’s a Bachelor’s of Urban Development with Honours (Quantity Surveying and Cost Engineering) from QUT. This course involves majors like urban planning, accountancy, and applied economics. There’s more to working as a quantity surveying than just good maths.

  • They’re quite worldly

This job allows people to travel. The construction industry needs quantity surveyors far and wide, especially during the initial stages of a project. Those who work for a company with offices abroad will find themselves on worksites from Hong Kong to Dubai. A quantity surveyor working for Deppro visits both regional and capital cities all around Australia at scheduled times of the year. So they definitely rack up the frequent flier miles.

Perks of the job? Qantas Club access!

 

  • Part of the group

To legally work as a QS, you need to become a member of the Australian Institute of Quantity Surveyors. This group represents all surveyors across Australia. Members are bound by a code of conduct to operate at a high standard. They have access to further education, professional executive events, and other resources.

Another institute both individuals and companies must register with is the Australian Tax Practitioners Board. This is especially the case when the quantity surveyor is working on calculating property depreciation. This way the tax depreciation schedule is fully ATO compliant.

 

  • More money, less tax

A quantity surveyor is also known as a cost estimator. Their job is to save money on the build without compromising quality. They’ll complete their job before the developers break ground and consult through the project.

Those who work on calculating depreciation, though, start their work when the buyer settles the home. After a walkthrough of the property, taking photographs, making notes, and inspecting plans, the quantity surveyor writes up a depreciation schedule. This sets out the lifespan of the fixtures in the property and how much value they’ll lose over time.

Quantity surveyors and your tax depreciation schedule

Who writes your tax depreciation schedule? Your trusted quantity surveyor does. You can’t get a schedule without them for a variety of reasons.

 

How early can I engage Deppro as my quantity surveyor?

You can engage Deppro very early in building projects. In fact quantity surveyors are more often associated with building and construction during initial project stages. They look at the building plans and the list of materials required, and from that they estimate costs.

 

Quantity surveyors work in a field that has the potential to take them around the world. Where there’s a building site, their services are required. They’re in their offices the  majority of the time writing reports and analysing information, though site trips are frequent.

 

Education

Before they work on building sites or for tax depreciation firms, an aspiring quantity surveyor attends university for their bachelor’s degree. These studies centre around urban development, construction design, engineering, and some economics specialities.

 

In Brisbane, for example, students enrol in a Bachelor of Urban Development (Honours) (Quantity Surveying and Cost Engineering). Students learn about cost engineering, business and tax law, architectural design, and more. By the end of the course they’re versed in building design, able to handle costing queries, and make effective property analyses.

 

Why not my accountant?

Your accountant is there for your financial needs. It’s their job to give advice and handle your statements, invoices, and returns. They aren’t licensed or versed in how to value property and all of the specifics of materials inside.

 

The ATO won’t accept a tax depreciation schedule from anyone else. Deppro’s quantity surveyors are qualified to make site visits, analyse the data and estimate the costs. They use critical thinking and analytical skills when looking over a property. Through this you’re guaranteed a thorough report that gives you maximum benefits.

 

The tax depreciation schedule is a ticket to the best return for anyone with an investment or commercial property. It contributes to your tax return, boosting it by tens of thousands over the time you have the investment in your portfolio. Deppro’s quantity surveyors are highly educated, accurate in their estimations, and accredited by the ATO, setting you up for nothing but success.