It’s a common misconception that Accountants provide Tax Depreciation Schedules for Investment Property owners. Unfortunately this is not true, they may help arrange for a Schedule to be done, but they cannot do it themselves.
Tax Depreciation firms (Quantity Surveyors) work very closely with Accountants and other financial professionals to help investors make the most of the tax benefits associated with owning investment properties. However, Accountants cannot legally produce the Schedule required by the Australian Taxation Office, in particular the construction costs (otherwise known as Div.43 Capital Works).
Accountants are great at claiming from receipts but are not qualified to calculate construction costs, and in the majority of cases miss claiming substantial deductions for their clients. The ATO specifically states; unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor the experience to make such estimates. (TR 97/25).
Only a Quantity Surveyor registered with the Tax Practitioners Board can produce and sign off on construction costs for Tax purposes. This helps minimise the clients and Accountants risk, it also helps increase the owner’s deductions.
Engaging a Quantity Surveyor can help owners understand their financial position earlier, prepare themselves prior to the EOFY and can save time waiting on their tax refund.
Asset Reports works with over 300 Real Estate agencies, Accountants, Brokers and Financial Advisors throughout WA to help maximise their clients returns.