We generally recommend our property investor clients obtain a quantity surveyors report so as to maximise available depreciation and capital works allowance claims. We received an article recently from BMT Quantity Surveyors, highlighting the fact that property investors who obtain a suitably qualified quantity surveyors report claim significantly higher amounts in their tax returns. Some excerpts from their media release are as follows:
New data from the Australian Taxation Office (ATO) relating to rental property deductions for the 2012-2013 financial year suggests that investors who used BMT Tax Depreciation claimed an average of $5,784 more than the average depreciation claim lodged with the ATO during the same time period.
BMT Tax Depreciation believes this data indicates that property investors could maximise their depreciation claims by using a specialist Quantity Surveyor and seeking the advice of an Accountant, rather than choosing to DIY their depreciation claims.
Bradley Beer, Chief Executive Officer at BMT, says that the difference between claims made by their clients and the average depreciation claim lodged with the ATO is due to the extensive training and experience that Quantity Surveyors have in estimating building costs and knowledge of how items depreciate over time.
“There may be a misconception in the market that suggests claiming depreciation for items by yourself or using a self-assessed schedule will save money.
“However, the data suggests if investors choose a Quantity Surveyor who specialises in depreciation, completes a site inspection and provides a comprehensive schedule, they will be rewarded with increased tax savings,” said Bradley Beer.
The recent data released by the ATO shows that Australian property investors claimed an average of $3,292 in depreciation deductions in the 2012-13 income year. By comparison, BMT Tax Depreciation clients had a much higher average claim of $9,076 – a difference of $5,784.
Some items investors often miss when claiming depreciation without expert advice include clotheslines, security systems, garbage bins, hot water systems, smoke alarms and even garden hoses.
If you currently own one or more investment properties, and have not obtained a quantity surveyor’s report, please contact us so that we can arrange for an inspection.