A depreciation schedule is a certified report that details all available tax depreciation deductions within a residential investment property or commercial building. Almost all properties – whether old or new – have depreciation to be claimed. A depreciation schedule must be completed by a specialist quantity surveyor.
In this article, Property Returns are going to outline the tax depreciation schedule cost and the factors that influence how much you will have to pay for a thorough depreciation schedule.
Let’s start with the basics.
What Is a Tax Depreciation Schedule?
Obtaining a depreciation schedule is an essential step taken by any investor looking to minimise their tax and maximise their investment. The document outlines to different claims and allowances.
1. The building capital (DIV43) which can be claimed as an allowance.
2. The plant (DIV40) which can be claimed as a depreciation expense.
Both are outlined in relation to the financial years they are owned by the investor and will determine an annual depreciation claim. Any investor will require a property depreciation schedule for any established investment property in Australia. The schedule will allow them to establish a timeline that contains all necessary details about the property’s history.
These details usually include the cost and completion date of the property’s original construction and any previous owners’ renovation work.
How Much Does a Depreciation Schedule Cost – The Breakdown
Typically, you should expect to pay anywhere between $385 to $770 for a depreciation schedule from an experienced surveyor. There are several factors that influence ‘how much does a depreciation schedule cost?’, including:
Factors Influencing a Tax Depreciation Schedule Cost
1. Type Of Property
The nature of your investment property will dictate how much you will have to pay to a licensed property surveyor. Larger, commercial properties will command a higher price than smaller apartments. Brand new properties will also see a lower fee than more expensive, already established properties, this is because new properties have plans, inclusions and other constructions costs are easily available, and accurate.
2. Complexity Of the Work
Research will need to be conducted by the surveyor before a complete depreciation schedule can be formulated. Physical property inspections combined with online research will help provide a thorough schedule. The more detailed this work is, the more you can expect to pay as there is a labour charge incorporated into the cost.
3. Quality of the Services
Whilst investors can save money by engaging the services of a cheaper provider, a more expensive provider can often provide a much higher level of service and ensure you receive more aggressive deductions. A knowledgeable, reputable provider can be the difference in ensuring your deduction is ATO compliant and a more accurate valuation.
Doing Your Own Depreciation Schedule
Completing your own depreciation is possible, with many companies offering a self-assessment option. However, the issue here is that you are not an expert in depreciation and are not aware of the things you need to consider. Missing even a few things on a checklist will make a significant difference to your final claim amount. Paying the extra amount for a thorough inspection to take place will ensure nothing is missed, and you won’t have to go to the property yourself to complete the assessment. So, whilst your tax depreciation schedule cost might be lower, you might miss out on more substantial tax claims.
How Many Depreciation Schedule Reports Do I Need To Do?
One additional factor impacting ‘how much does a depreciation schedule cost?’, is the fact that you should only need to do it once. Once you have completed the schedule, your accountant will use it over the lifetime of your property. However, should your property undergo any major changes, you may require a new depreciation report. A meticulous depreciation schedule should only be a single cost when done correctly. If you are considering making any significant changes to your property, consult with a member of your team to ensure you do not miss out on any deductions.
Can My Accountant Do My Depreciation Schedule?
Accountants are not recognised by the ATO as having the appropriate skills or certifications to estimate asset values and constructions costs. A specialist quantity surveyor is experienced in assigning values to assets in property and knowledgeable on relevant legislation that applies to depreciation. It is always worth investing in a surveyor who is compliant to ATO requirements and will secure you all the deductions that you are entitled to.
How Much Does a Depreciation Schedule Cost with Property Returns?
At Property Returns, we understand that every property is unique, whether commercial or residential. Depreciable assets age differently over time, and we recognise all the ATO’s rules regarding the depreciation of assets.
A member of our expert team of quantity surveyors will guide you through the depreciation schedule to ensure you are receiving any deduction you are entitled to. We will gather all relevant data relating to your property purchase, any historical information surrounding the building structure, plus all associated improvements to it. By doing this, Property Returns produces the most accurate depreciation schedules for all our clients that maximise the tax savings for the lifetime of the property ownership.
If you are looking for more information on ‘how much does a depreciation schedule cost?’ or if you’re looking to get the most out of your portfolio, get in touch with us today on our website or call us on 1300 829 221, or even order a schedule online to get started.