Hi folks. Im looking to get a depreciation schedule done for my IP in Roxby Downs. Because of its location (middle of SA) the price is around $600-800 with travel included. One company I spoke to said they can do it sight unseen they just require me to fill in some documents and supply some plans and pictures of the property. I have alson had someone say that you don’t actually need a qualified quantity surveyor to carry it out and that you or you accountant can estimate it yourselves. I have read somewhere that only a qualified QS can estimate the depreciation. So I have a few different conflicting scenarios here and would like a bit of input or advice and also someone to set the record straight. Many thanks.
Here's a clikky to one QS website: Clikky
In essence they say:
The role of the Quantity Surveyor
Quantity Surveyors are recognised under the Australian Tax Office Ruling No. 97/25 as appropriately qualified professionals for the purposes of assessing the construction value of rental properties.
Specifically TR 97/25 holds that: “Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate”
There are links to self assessment provisions to keep down your costs (but if you are getting a tax deduction for the qs fees who is going to quibble over an extra couple of hundred for travel?)
Yes, you can have your accountant do the job but they will use the straight line or % basis but will not individually assess items which get accelarated depreciation eg stove, air-cond etc. For this they will charge you annually as opposed to getting a schedule from the QS which covers the next 20 years ie $40 per year of their fee.
ALWAYS use a reputable quantity surveyor to obtain a depreciation report and ALWAYS ensure they visit the property to cover yourself if the ATO ever queries your deductions.
The Rentwise blog contains some handy info and tips on depreciation schedules: http://blog.rentwise.com.au/index.php/2010/05/18/depreciation-reports-please-explain/
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