Accountants are not qualified to estimate construction costs, which includes more than just materials & construction labour. For example, accountants are not qualified to estimate construction works & associated costs of previous works over the life of the property. Our research shows that depreciation claimed by accountants without the use of a professionally prepared tax depreciation schedule are far more conservative & result in thousands of dollars in lost deductions for the investor. In order to maximise your depreciation claim, you need to have a report prepared by a quantity surveyor.
Quantity Surveyors are one of the few professional groups that are recognised by the ATO as being appropriately qualified to accurately assess and report on construction costs and depreciable values. It is important to note that accountants can apply actual costs, but are not recognised by the ATO as being appropriately qualified to estimate construction costs, and so any calculations prepared by them may be deemed non-compliant, a thorough understanding of the Income Tax Assessment Act, applicable rulings, case law and specialist construction costing skills are required.
If you own an investment property, the best way to ensure your depreciation deductions have been maximised is to use a tax depreciation schedule.
A Capital Claims Tax Depreciation team member will be very happy to answer any questions you may have about claiming depreciation on your investment property. You can contact Alex during business hours on 1300 922 220 or via email on firstname.lastname@example.org. If you would like a free estimate of what tax depreciation deductions you're entitled to click here.
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