Is a certified quantity surveyor a good idea?
With tax time in full swing, and the Australian Taxation Office recently revealing its plans to crackdown on property investors’ tax returns, do investors have all the tools they need to get their tax in order?
The Australian Institute of Quantity Surveyors (AIQS), an advocacy body for the quantity surveyor profession, has highlighted the values that their services can provide to an investor, especially at tax time.
Grant Warner, CEO of AIQS, stressed the importance of utilising the services of certified quantity surveyors to undertake assessments of potential deductible items for investment properties.
“Quantity surveyors are experts in depreciation and construction costs,” he said.
“They have the knowledge and experience to identify all depreciable items in a property and to calculate the correct depreciation rates,” he explained.
“With the ATO focusing on rental income as well as regularly changes to tax depreciation rules, it is important to use a certified quantity surveyor who is familiar with the latest changes.”
He also noted that surveyors are able to provide investors with a well-prepared depreciation schedule, “which may reduce taxable income”.
The AIQS flagged three ways investors can benefit from a surveyor’s involvement:
1. Maximise deductions
A certified quantity surveyor can maximise the deductions on an investment property and contents.
2. Cost estimation
If an investment property has no documentation on construction costs, a quantity surveyor can come in and assess the property to estimate costs.
3. All deductions identified
Through a physical or technology-enabled inspection, a quantity surveyor can ensure all potentially deductible items are identified.
As for the continued benefits of a tax depreciation schedule, AIQS advised that the schedule “should be updated every time there are significant changes to the property, such as renovations or extensions”.
The group also recommended keeping the depreciation schedule for your records, “in case you are ever audited by the ATO”.