- magic32Participant@magic32Join Date: 2005Post Count: 49
Are there any good quantity surveyors in Sydney for a depreciation report that you can recommend?
ThankscondevParticipant@condevJoin Date: 2011Post Count: 20
I am sure that there are, but unfortunately I dont know of any. Have you considered going online, my compay is aaaonlinepds.com.au
but there are a few reasonable ones at 1/3 of the fee you will be quoted for a full service schedule
GeorgeCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404InvestorMickParticipant@investormickJoin Date: 2008Post Count: 55
We’ve used Depreciators in the past and found them great and easy to work with. Be aware that if you do plan to sell properties in the future any depreciation you have claimed will be added to your profit so the ATO give with the one hand and take it back with the other!!! Talk to your accountant about this.DerekMember@derekJoin Date: 2004Post Count: 3,544
There is a nexus between depreciation and capital gains tax but the key thing is the ATO can make a calculation based on what you could have claimed rather than just what you have claimed – see below extract from the ATO's "Rental Properties Guide 2011"
"You must exclude from the cost base of a CGT asset (including a building, structure or other capital improvement to land that is treated as a separate asset for CGT purposes) the amount of capital works deductions you have claimed or can (my highlight) claim in respect of the asset if:
1) you acquired the asset after 7.30pm (by legal time in the ACT) on 13 May 1997, or
2) you acquired the asset before that time and the expenditure that gave rise to the capital works deductions was incurred after 30 June 1999."
Note the implications of claiming, or not claiming, depreciation only applies to capital works deductions. It does not apply to plant and equipment depreciation claims.
But – disclaimer applies I am not an accountant.InvestorMickParticipant@investormickJoin Date: 2008Post Count: 55
Thanks for your input here Derek! Again, I would discuss this with your accountant because our experience is certainly as I have suggested. In the big picture it doesn’t make a huge difference if you have some good CG but if a deal is only marginal it can be money not well spent!
It’s always good to know what implications are in as much as you can when it comes to property investing before you commit your $’s to something.