Good Depreciation Schedule

Hi,

How do I know if a quantity surveyor is good, and what questions should I ask them to found out if they are good - i.e. quality report with maximum deductions, and good service.

Any ones you recommend?

Thanks

Get tow or three to provide you with a standard copy of work for a similar premises to your own, client references and come to your own conclusions

Washingtown Brown...just a suggestion

Magic32,

Not sure if you are getting a report for a strata title apartment/unit, but if you are, one thing to specifically ask the QS to do is calculate the depreciation and capital allowance in common areas of the block (you are entitled for a share of the common area
depreciation).

Regards

Kevin

Kevin Thang| Chartered Accountant & Principal of Edvico Mortgage Solutions | Suite 5, 28 Belmore St Burwood 2134 |
Tel (02) 9744 0066 | Mobile 0403 268 963 |Email kevin.thang@edvico.com.au | Edvico Pty Ltd | ABN 13 129 124 732

Hi,

Thanks for the replies.

My units were built in the 1970s  (so before 1985).

I have spoken to some of them. Some have said that it is still worth doing the depreciation schedule for the old fixtures and fittings, and will ensure that the amount claimed will be more than the cost of the report. Others have said that it is not worth it, the units are too old and most of the depreciation is gone.

Also, there was one that was half the price of others, but he said that you won't get much back, although still more than cost of report, he was not very enthusiastic about it . And another one that costs around normal price, but said definitely worth doing it, and was more enthusiastic about it. Which one should I choose?

Do you have experience with depreciation of old properties, of approx how much is claimed per year. It seems that it is logical that I do get depreciation schedules since they will guarantee the claims to be more than cost of the report.

Your opinions would be appreciated.

Hi magic32,

Don't be put off by the less enthusiastic QS's you spoke to.

What state are you in? I can give you recommendations for Melb, Sydney and Bris/Gold Coast. If they apply to you, please PM me and I'll provide details.

Cheers,

Michael.
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Whatever you can do, or dream you can, begin it now. Boldness has genius, power and, magic in it.
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Also forgot to mention that the purchase price for my properties were around $150,000

We've used Scott from  Depreciator a number of times and have found that he's happy to chat; he's on this site (and SS) so maybe make contact and ask a question or two...nothing to loose

"Money is a currency, like electricity and it requires momentum to make it Effective"

Online Positive Cashflow and Renovating Calculators

Hi Magic

Most pre-1985 properties are still worth the excercise and at the end of the day if you get $1 back from the taxman after paying for your report, I reckon that is $1 well spent!

My 2 cents worth anyway.

Cheers

Neil Richardson - Quantity Surveyor

www.njr.com.au

Neil Richardson - Quantity Surveyor
www.njr.com.au

We use Depreciators everytime and find them to be great. Easy to work with, reasonable cost and increases our % return.

Mick

I used Washington Brown and our accountant seemed to be impressed- which is the main thing i guess

Also, CMR & Assoc. in Melbourne are good, just another suggestion.

Alysha

I used BMT for an old house and report will pay for itself many times over.Surprised that the depreciation rates appeared to be correct also. (I am an accountant). Some QS get the rates wrong, then you just use their"cost" figure only.

Ask them if they are up to date with ATO ruling 2007/3 for 2008 year. If they are not, be wary.

thomas

Magic,
The viability of doing a Depreciation Schedule on a pre 85 unit depends on two things: the quality of the Assets (fixtures and fittings) and the length of time you have owned the property.
Let's say it's a recently purchased, pretty basic unit with no flash appliances. The depreciation in the first year may be around $800-$1,000. Second year there will probably be less. With an expected deduction of only $800 or so, I'm dubious as to whether it's worth you paying a QS to inspect the place. Sure, the depreciation found is more than the QS fee, but I'm still not sure it's always worth it.
If you have owned the place for some years and lived in it, paying for a Schedule will be even less viable as the Assets will have lost much of their value.
Of course, if the unit has decent carpet, a split system or two, a dishwasher etc there will be lots more depreciation.
We are reluctant to do inspections of pre 85 units as it often doesn't make sense for our clients. We have another method of tackling these, but to talk about that would be 'advertising'.
I'm always happy to look at internal photos of properties. With a few questions, we can usually work out roughly what depreciation may be there then at least people can make an informed decision on what to do.
Scott

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
www.depreciator.com.au

Thanks for your replies everyone.