Sorting Out Your Finance and Money Situation
How a Quantity Surveyor Can Help You Depreciate Your Investment Property Correctly
Terry Porter
Do you own some property that you treat purely as an investment? A large number of Australians are taking this approach when it comes to broadening their portfolio. You may be aware that you can get some tax benefits, which will augment your investment through these properties, but are not entirely sure how to go about claiming them. What do you need to know about calculating the correct values and why should you bring in an expert to help you?
Why a Quantity Surveyor Is Crucial
The ATO allows you to include an itemised entry on your tax return, to depreciate the value of your investment property. However, the way that this is calculated can be somewhat complex. This is why it's a good idea to enlist the services of a quantity surveyor to help you get it right.
To start off with, the value of the property based on its condition and age must be calculated correctly, to enable you to deduct the right amount of capital value each year. A quantity surveyor will be able to help you, as they are very well versed in construction costs and project visibility. They will be able to use these data calculations to help create the proper depreciation strategy.
A Formal Process
While this type of approach is very commonplace, the ATO is very strict when it comes to these allowances and the way that they are figured out. The quantity surveyor must inspect the property before they come up with a schedule based on their discovery. Remember, they also have to be registered and licensed and include evidence that they have visited the property first-hand to assess its condition and detail.
What Data Is Needed?
The type of information required will include a full description of the property in terms of its material, condition and structure. Each one of the internal fittings has to be catalogued and this includes appliances, lighting fixtures and floor treatments. Photos will need to accompany the report, once individual values have been calculated.
You may also like to bring in a qualified accountant at this stage, who will take the report supplied by the quantity surveyor and calculate the depreciation..
Starting off Right
It is typically necessary to undergo a full, formal inspection when you initially buy the property for investment purposes. This data can be used as a template in subsequent years, with adjustments made should additional fixtures or fittings be brought in, or modifications made to the structure.
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