For more information on depreciation or to discuss your specific investment property, call 0411 688002 or 07 49543 950 or email j.stanley@cqqs.com.au. Jodie Stanley is a Director of Central Queensland Quantity Surveying and we specialise in Tax Depreciation schedules to help property investors PAY LESS TAX! She has a degree in Quantity Surveying and is a member of the Australian Institute of Quantity Surveyors.

Investors Pay Less TAX! Increase cash flow with these Depreciation TOP Tips

For many people they have no idea about Tax Depreciation schedule so below are some top tips to maximise the return on your investment property.

Number 1: Use an Experienced Quantity Surveyor The ATO has identified quantity surveyors that are registered as Tax Agents are appropriately qualified to estimate the original construction costs in cases where that figure is unknown. The rules and case law changes over the years, and each building is unique, so why would it pays to get expert advice. The ATO requires all companies who prepare Tax Depreciation Schedules to be registered Tax Agents.

Number 2: Claiming the Residual Value Write Off If you are renovating a kitchen or bathroom in a property built after 1985 – it is worthwhile to get a quantity surveyor in before you demolish so they can assess what the residual value of the existing items are. This is knows as scrapping. This value can be claimed as an outright deduction and can generate huge savings through otherwise messed deductions. In addition you get to claim depreciation on the new work once it is completed

Number 3: Immediate Deductions of Assets with a short Effective Life Back at University in an Economics subject they introduced a great topic the Time value of money. A dollar today is worth more than a dollar in a few years’ time. My choice would be to deduct items as quickly as possible. Individual items under $300 can be written off immediately. An important thing to remember here is that provided your portion is under $300 you can still write it off.

Number 4: Properties don’t need to be new - Old Properties Depreciate as well Properties built before 1985 (when the building allowance strated) can be worth depreciating in many cases. Give us a call and we can look into it for you. The purchase price of your property includes the Land, Building and the Plant and Equipment. As a quantity surveyor we help you apportion or break down the purchase price into those categories. In the majority of cases there is more than enough plant and equipment items to make it a worthwhile exercise.

Number 5: Not all Construction Costs are Tax Deductible Not all costs are able to be claimed through depreciation. Thinks like clearing the site and demolition can not be claimed. Also soft landscaping such as plants and grass is not depreciable.

Number 6: “My accountant handles all that! “ The ATO has identifies Quantity Surveyors as appropriately qualifies to estimate the original construction costs in cases where figure in not know. Generally accountants, real estate agents and Property values are NOT deemed to be able to estimate the cost of construction for properties built after 1985. People often mention to us their account told them to call me, and it is the last thing they need to collect their tax return. Lots of my clients are professionals and include Accountants, Valuers, Financial Planners, Property Managers and Real Estate agents and the list goes on.

For more information on depreciation or to discuss your specific investment property, call 0411 688002 or 07 49543 950 or email j.stanley@cqqs.com.au. Jodie Stanley is a Director of Central Queensland Quantity Surveying and we specialise in Tax Depreciation schedules to help property investors PAY LESS TAX! She has a degree in Quantity Surveying and is a member of the Australian Institute of Quantity Surveyors.