Fees for depreciation schedules vary depending on the property type and the scope of work. The fee for a "self-assessment" report will be much less than the fee for a full service depreciation schedule. Most quantity surveying firms will be prepare a depreciation schedule for a brand new property that has all the build and spec information available for a lesser fee than an older property that requires more detailed assessment.
We work through some specifics below starting with established properties and then brand new ones:
Established residential properties are those that are not brand new when they are purchased ie. the property has been purchased second-hand.
Market fees for these schedules range from around $275.00 for budget self-assess reports, up to the most expensive being $770.00+ for a basic report from the largest competitor (excludes a scrapping report).
In established properties it becomes essential to create a timeline of the history of the property, to identify, date and cost works that have been completed, and to assign new effective lives and values to the second-hand assets (assigning new values and effective lives to second-hand assets only applies to properties purchased prior to May 9, 2017).
Research may include a physical inspection of the property, online research using paid tools and resources, or a combination of both.
Cheaper providers typically do not:
So, whilst these reports are a few hundred dollars cheaper at the outset, they mean you will likely miss out on tens of thousands of dollars of deductions over the time you are claiming depreciation. When you consider the fee is 100% tax deductible, the difference between a cheap report and a quality report becomes less than the cost of dinner and a movie for 2 people!
A reputable, quality provider will:
As many of our clients have found, that is worth paying a little extra for. Unfortunately, some clients have been referred to us having purchased a cheaper report and missed out on thousands of dollars. Fortunately though there was still value in purchasing our report in addition to their cheap report. The trick is to to pay what you need to upfront for a quality schedule that maximises your returns.
A Capital Claims Tax Depreciation schedule is considered by our clients and referrers to be the best value in the market. We deliver the highest quality, user-friendly depreciation reports, for between $440.00 for brand new properties, and up to $690.00 for properties we inspect (depending on the scope of work required). Because we also include scrapping (where relevant) in our standard depreciation schedules, our fee represents a good saving compared to the largest competitors report. We have also negotiated some great discounts for clients of referring businesses that investors may be entitled to - just ask! To request a personalised quote for your property please click here.
For brand new properties, where plans, inclusions and construction costs are available we don't need to conduct as much research, as much of the information is available from the owner or the builder and is current and accurate.
What we do is correctly apportion costs and values between Division 40 and Division 43 to ensure they are effectively depreciated for maximum value. We ensure assets are applied to the immediate write-off or low-cost pool where applicable. We forecast the depreciation for the full 40 years ensuring assets fall into pooling over time to maximise the results. We report depreciation in both diminishing value and prime cost methods so you can select the most suitable method for yourself.
To secure the discounted fee for a brand new property we will require:
This information is typically provided by your builder.
Accountants are not recognised by the ATO as having the appropriate skills and qualifications to estimate construction costs and asset values. Accountants just don't have the same experience as we do in the apportionment of assets, and in interpreting specific legislation relating to depreciation. You are going to pay for the work either way, so you are best off using an expert and making sure you have the best, ATO compliant result possible. After all, you've spent enough securing the property, you want to make sure you are claiming every dollar in deductions you are entitled to.
Due to the vast range of commercial properties, it is impossible to answer this question specifically. At Capital Claims Tax Depreciation however, we don't believe in charging a premium purely because a property is commercial. We recognise that many commercial properties are owned by small business owners, and cash flow is critical. Small offices, warehouses, professional suites often cost little more than an established house. We have charged fees ranging from $700.00 up to thousands of dollars for larger commercial properties. All commercial premises are quoted individually and guaranteed to deliver maximum deductions and generate the greatest return on investment for our clients. For a personalised quote for your commercial premises contact our friendly team of experts on 1300 922 220.
A Capital Claims Tax Depreciation Schedule:
Our team is highly experienced and qualified and all of our reports are signed off by our company director.
We established in 2008 and grow steadily every year. We are the leading partner for depreciation schedules for the country's most proactive accountants.
Mark is an expert quantity surveyor, business owner, public speaker and property developer. With 20+ years experience in the construction and quantity surveying industry Mark’s specialist expertise have been sought in consultant capacity by professional bodies such as the National Institute of Accountants and the National Tax and Accountants Association, and he has presented at various property and tax seminars and expos nationwide. Mark holds a Bachelor of Construction Management from the University of Newcastle, is an affiliate member of the Australian Institute of Quantity Surveyors and a Registered Tax Agent.View all posts by Mark Wilkins