Report cost?

Small investment for big returns

As with all professions, greater value is derived by engaging an experienced professional to undertake technical and industry specific activities. For a quality Tax Depreciation Report, that will maximise the deductions available to you, you really need to engage an experienced quantity surveyor.  For a standard residential property,  you can expect to pay between $600 and $1,200 in a metropolitan or regional area.

Investors should really be aiming to maximise value for money , not simply minimise one off expenses by using the cheapest option available.  Remember, the report you purchase should last you the life of the property , and so when you consider the upfront fee spread over those number of years, a quality report is a really inexpensive investment anyway.  A cheap, sub-standard report, will see you missing out on  thousands of dollars in deductions each and every year for the life of the property.  Hardly worth it to save a couple of hundred dollars on a fee that is 100% tax deductible in the first year anyway!

Some companies offer tax depreciation reports in the $300 to $500 range, however it is recommended you ensure that:

• The quantity surveyor undertaking the report is a Registered Tax Agent , and member of the Australian Institute of Quantity Surveyors ;
• A full inspection will be conducted on the property;
• The person conducting the inspection is properly trained and qualified to identify all depreciable items;
• The fee is all inclusive and you won’t be charged extra for things like – council searches, inclusion of pre- and post-purchase additions/renovations, a scrapping report if applicable;
• The report includes both methods of depreciation to ensure that your accountant can apply the one which best suits your financial circumstances;
• The quantity surveyor has adequate experience to fully maximise your capital allowance and tax depreciation entitlements e.g. a tax depreciation specialist with at least 5 years experience .

Not all Tax Depreciation Reports are the same.  Choosing the right quantity surveyor to undertake your report can make significant difference in the result.  To understand exactly how reports in the market can differ visit our blog Are all Tax Depreciation Reports the same?