During this tax season, many property investors now have very tight budgets. They often choose the lowest price companies, from just $190 to complete their Tax Depreciation Schedule.
As a national provider that has prepared Tax Depreciation Schedules for nearly 20 years, we have been concerned with the 100s of new providers entering the market andteh qualifications of these companies entering the market. For many clients who simply Google Tax Depreciation Australia, they are inundated with ‘Qualified Quantity Surveyors’. We assume a Qualified Quantity Surveyor are professionals with the skills to calculate Tax Depreciation Deductions utilising the current tax legislation to the clients advantage.
Based no experience, Koste has reviewed many depreciation schedules prepared by a range of companies over the years and found significant differences and non compliant mistakes. We have found a overall lack of understanding of the current tax legislation and depreciation rates and changes needed to maximise returns. In addition construction costs are often incorrect and values under estimated.
What if I use a Quantity Surveyor that is not qualified to complete my tax depreciation report?
Whilst 95% of Tax Depreciation schedules will never be audited, you may be one of the unlucky 5% who is subject to a full ATO audit. In fact. ATO will look to the Tax Depreciation provider for justification. The will look at the use of the current legislation, costs, and methods of calculation used, and the research carried out to establish the cost base of the report. More importantly, the ATO will take note of the professional qualification of the company.
So how do property investors choose a provider?
Many companies are fantastic at marketing. They capture property investors’ attention with false promises and low fees.
Therefore, the best way to reduce your risks of audit and to guarantee a professional service from a company that has experience in Tax Depreciation & Quantity Surveying is to look at the professional qualifications. Simply select one of the links below to confirm if your Tax Depreciation provider is a member of the professional bodies, which is needed to support you.