All Topics / Legal & Accounting / Quantity Surveyor Necessary?

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of suzieqsuzieq
    Member
    @suzieq
    Join Date: 2003
    Post Count: 149

    Hi all,

    Up until now I have not used a QS for any of my properties (all older ones). 

    My Accountant has prepared all depreciation schedules using estimates (all within ATO guidelines).  Having just purchased my very first NEW property in another state I am thinking that it may be necessary to get a QS.  Does anyone else out there use their Accountant or always use a QS?  I am confused……….is it actually necessary to use a QS or can you actually use your accountant?

    thanks

    sq

    Profile photo of kellylockkellylock
    Member
    @kellylock
    Join Date: 2007
    Post Count: 60

    I have also recently looked at getting a brand new property, and I was told that a QS is THE qualified person who works out the depreciation schedule, while your accountant looks after the tax side of things.

    That is the depth of my experience.

    Kelly

    Profile photo of AmandaBSAmandaBS
    Participant
    @amandabs
    Join Date: 2005
    Post Count: 549

    I'd suggest you look at using a QS for a newer property as they'll do a personal inspection and pick up many items an Accountant may overlook from behind a desk.

    Try contacting Matthew Quinn from Catalyst Property Services.  Here's his link: http://www.propertydivas.com.au/7ProfServ/Professionals.aspx?cmaid=9698e357-b6ce-4e7c-8f1c-d813757e1b53&cmstat=Profall  They are based in Adelaide but have branches Australia wide.

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    Sq, if you have previously bought older properties – pre 85 built – the only depreciation in them has been in the Assets (fixtures and fittings). According to the ATO, it does not take any particular expertise to estimate the value of Assets.
    With a newer property, though, somebody will have to estimate how much it cost to build. The ATO has been telling accountants for some years that cannot do this. A QS is the person best trained to do this.
    If the property is brand new and you have a builder's contract with a construction price, your accountant may be able to work with it.
    Scott

    Profile photo of suzieqsuzieq
    Member
    @suzieq
    Join Date: 2003
    Post Count: 149

    Thanks a lot for all your replies.

    My Accountant is a CPA and has done depreciation schedules for us in the past for business and other assets (eg: cars ect), so I have no doubt he could prepare one for us.  I am in the throws of contacting the actual builder (who also is the vendor) of the property, to see if he can write something up for me with the construction cost, which I then could take to my accountant.  If he is not willing to do this then I will need to get hold of a QS I suppose.  Anyone know of one in Melbourne?

    What is actually classed in construction cost  beside building        – fencing? shed? landscaping? floorboards?

    thanks

    Sq

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    Suzie, cars etc have book values, so it's easy to know what they are worth for depreciation purposes. Buildings are tougher, and the ATO has been saying to accountants for years that they cannot have a stab at construction costs because they don't have the relevant qualifications.
    If the builder can get actual costs, your accountant can use them.
    We've naturally got guys in Melbourne.
    The building consists of the subfloor, walls, roof, plumbing, wiring, bathroom fitout, kitchen fitout, floorboards – basically everything that will last 40 or so years with normal use. Fences, driveways, retaining walls etc are also 'building', depending on when they were done. Architect, engineer etc fees can also be included.
    Scott

    Profile photo of suzieqsuzieq
    Member
    @suzieq
    Join Date: 2003
    Post Count: 149

    Scott

    Contacted the builder (vendor) and he did not want to disclose the construction cost to me, but said that we should be able to work it out easy enough based on the Land Value Assessment/Rates notice.  I do have a document from State Revenue which clearly states the value of the unimproved land prior to them building on it.  Could this be used to get close to the mark as far as construction costs?

    What do you think?

    sq

    Profile photo of lisaslisas
    Member
    @lisas
    Join Date: 2005
    Post Count: 36

    Hi Suzie

    Based on my experience I say use a quantity surveyor.  They will detail for you every possible depreciable item so you can be sure you are maximising your tax deductions.  I used an accountant  to work out the depreciation for a 2 yo property I purchased a few years ago and also used a quantity surveyor the following year (just to check if I was getting the correct deduction) and the quantity surveyors depreciation schedule was more beneficial to me.  Accountants can estimate the depreciation but it is difficult as they are not building experts. 

    I now use a QS for all properties regardless of age.  Also the cost of the schedule is deductible in the year it is purchased.

    Lisa

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.