What Is a Quantity Surveyor?

If you want to maximize the tax deductions on your investment property, quantity surveyors are extremely important. Often, your mortgage broker or accountant may advise you to see one. A quantity surveyor specializes in assessing and calculating the costs of the construction of a property. The specialization extends to council approvals, bank lending, arranging payments, ordering construction materials, and the like. But, what many property investors need from quantity surveyors is the preparation for tax depreciation, including the creation of depreciation schedules and providing cost estimation.

So, what is a quantity surveyor?

Quantity surveyors are among the important financial advisors in the world of construction, rental property, and tax. A big part of their job is to keep track and estimate the costs of a construction project starting from planning to completion. They determine the number of materials necessary for real estate development as well as their prices.

Quantity surveyors are qualified to produce tax depreciation schedules for property investors both in the commercial and residential sectors. For example, they evaluate the assets on the rental property depreciation Melbourne, including the fittings, fixtures, and the building itself. When seeking to maximize your return on investment property, they are the depreciation experts you should have on your team.

How can a quantity surveyor help you in tax season?

Property investors usually gather the necessary documents and receipts as tax time comes near. They either consult with their accountant or submit their tax return online. They think that that is the only thing they need to claim their deductions. However, it often leads to failing to claim the available tax deductions from their investment properties. This is because they are not aware that they can claim for the building depreciation and the assets inside.

When it comes to cost estimation of items in your property, the Australian Taxation Office has strict guidelines in submitting depreciation reports. Words will not make ATO believe you or your accountant. There is a tax ruling that investors may assess depreciation on their properties, but only if they hire a qualified quantity surveyor to do the job. Therefore, if you have a quantity surveyor to evaluate your investment value, it means they will also break down your depreciation schedule.

When should you use the services of a quantity surveyor?

While a quantity surveyor is a valuable financial expert, there are specific times when you should engage with them. For one, when you are setting on a major property renovation or building a new structure, make sure to find a quantity surveyor. Also, if you are a first-time property investor, you need a quantity surveyor to determine the value of the entire building, including the assets that you can make a claim to.

As a property investor, it is beneficial to your cash flow to be able to claim maximum tax depreciation deductions. With this, you need a comprehensive schedule of depreciation for each of your property if you have multiple. Moreover, the expertise of a quantity surveyor is quite helpful if you are making significant changes in the portfolio of your existing investment property.

What does a depreciation schedule consist of?

When you request a schedule from a quantity surveyor, you should get a report that covers 40 years, comprising the summary of the deductions. The professional usually uses a few methods such as diminishing value, prime cost, and instant write-off. Low-value pooling, in particular, is a method that enables you to maximize plant and equipment depreciation.

In case you own the investment property with another person, you may ask the quantity surveyor to give you a split report, indicating the percentage of interest of the assets inside the property of each investor. It is best to have a tailored depreciation schedule based on your situation.

What are the advantages of using a surveyor?

When you have a quantity surveyor on your side, your investment property can avoid mistakes and risks due to informal calculations and rough estimates. What you need is an accurate cash projection so there are no costly surprises, for example, overpaying for materials during construction. Having a cash flow projection also allows you to plan the budget accordingly.

Among other things, a quantity surveyor can help you save money by uncovering opportunities that will likely go unnoticed if you do all this by yourself. Keep in mind that a surveyor can help you get the claim you rightfully deserve.