How much does a tax depreciation schedule cost

How much does a Depreciation Schedule cost?

Fees for depreciation schedules vary depending on the property type and the scope of work.  The fee for a “self-assessment” report will be much less than the fee for a full service depreciation schedule.  Most quantity surveying firms will be prepare a depreciation schedule for a brand new property that has all the build and spec information available for a lesser fee than an older property that requires more detailed assessment.

We work through some specifics below starting with established properties and then brand new ones:

What is the typical fee for an established residential house?

Established residential properties are those that are not brand new when they are purchased ie. the property has  been purchased second-hand.

Market fees for these schedules range from around $275.00 for budget self-assess reports, up to the most expensive being $770.00+ for a basic report from the largest competitor (excludes a scrapping report).

Why the variation in fees for depreciation schedules?

In established properties it becomes essential to create a timeline of the history of the property, to identify, date and cost works that have been completed, and to assign new effective lives and values to the second-hand assets (assigning new values and effective lives to second-hand assets only applies to properties purchased prior to May 9, 2017).

Research may include a physical inspection of the property, online research using paid tools and resources, or a combination of both.

Cheaper providers typically do not:

  • conduct paid searches to identify approved works and compare property photos over time;
  • have the experience to identify, date and cost extensions and property improvements;
  • utilise low-cost and low-value pooling to claim more aggressively;
  • forecast for the full 40 years;
  • itemise all individual assets;
  • effectively value and assign new effective lives to second-hand assets (where qualifying).

So, whilst these reports are a few hundred dollars cheaper at the outset, they mean you will likely miss out on tens of thousands of dollars of deductions over the time you are claiming depreciation.  When you consider the fee is 100% tax deductible, the difference between a cheap report and a quality report becomes less than the cost of dinner and a movie for 2 people!

A reputable, quality provider will:

  • offer a reliable estimate of deductions up-front for no charge;
  • apply a greater level of expertise and experience to assessing and valuing construction works and second-hand assets;
  • report your deductions more aggressively by using thorough knowledge of relevant legislation and case law;
  • ensure your schedule is ATO compliant;
  • have a quantity surveyor quality assure and sign off on your schedule; and
  • be easy to contact should you or your advisers have any questions.

As many of our clients have found, that is worth paying a little extra for.  Unfortunately, some clients have been referred to us having purchased a cheaper report and missed out on thousands of dollars.  Fortunately though there was still value in purchasing our report in addition to their cheap report.  The trick is to to pay what you need to upfront for a quality schedule that maximises your returns.

What does a Capital Claims Tax Depreciation schedule cost?

A Capital Claims Tax Depreciation schedule is considered by our clients and referrers to be the best value in the market. We deliver the highest quality, user-friendly depreciation reports, for between $440.00 for brand new properties, and up to $690.00 for properties we inspect (depending on the scope of work required). Because we also include scrapping (where relevant) in our standard depreciation schedules, our fee represents a good saving compared to the largest competitors report.

We have also negotiated some great discounts for clients of referring businesses that investors may be entitled to – just ask!  To request a personalised quote for your property please click here.

Brand new properties – why is the fee discounted?

For brand new properties, where plans, inclusions and construction costs are available we don’t need to conduct as much research, as much of the information is available from the owner or the builder and is current and accurate.

So what do you do for a brand new property?

What we do is correctly apportion costs and values between Division 40 and Division 43 to ensure they are effectively depreciated for maximum value.  We ensure assets are applied to the immediate write-off or low-cost pool where applicable.
We forecast the depreciation for the full 40 years ensuring assets fall into pooling over time to maximise the results.  We report depreciation in both diminishing value and prime cost methods so you can select the most suitable method for yourself.

What information do I need to provide to secure this discounted fee?

To secure the discounted fee for a brand new property we will require:

  1. a copy of your floor plan;
  2. a list of your inclusions;
  3. the contracted construction cost.

This information is typically provided by your builder.

Can’t my accountant just do it?

Accountants are not recognised by the ATO as having the appropriate skills and qualifications to estimate construction costs and asset values.  Accountants just don’t have the same experience as we do in the apportionment of assets, and in interpreting specific legislation relating to depreciation.

You are going to pay for the work either way, so you are best off using an expert and making sure you have the best, ATO compliant result possible. After all, you’ve spent enough securing the property, you want to make sure you are claiming every dollar in deductions you are entitled to.

How much does a depreciation schedule cost for commercial property?

Due to the vast range of commercial properties, it is impossible to answer this question specifically.  At Capital Claims Tax Depreciation however, we don’t believe in charging a premium purely because a property is commercial.  We recognise that many commercial properties are owned by small business owners, and cash flow is critical.

Small offices, warehouses, professional suites often cost little more than an established house.  We have charged fees ranging from $700.00 up to thousands of dollars for larger commercial properties.  All commercial premises are quoted individually and guaranteed to deliver maximum deductions and generate the greatest return on investment for our clients.

For a personalised quote for your commercial premises contact our friendly team of experts on 1300 922 220.

Why are Capital Claims depreciation schedules the best?

A Capital Claims Tax Depreciation Schedule:

  • Maximises the available deductions for every property;
  • Runs for the full 40 years – and so is a one-time investment;
  • Includes both diminishing value and prime cost (straight line) methods of depreciation so you can apply the results most suitable to your situation;
  • Includes a scrapping schedule if required;
  • Itemises all Division 40 assets and Division 40 capital works;
  • Can be easily split for multiple property owners for no extra charge;
  • Is easy to read and understand and results are ready to apply with no further calculations required – no extra work for you or your accountant;
  • Request free updates to your report when you replace or add new assets;
  • Request a free, reliable estimate of deductions before we even start!

Our team is highly experienced and qualified and all of our reports are signed off by our company director.

We established in 2008 and grow steadily every year.  We are the leading partner for depreciation schedules for the country’s most proactive accountants.

To request a sample depreciation schedule please click here.

For a free estimate of depreciation deductions click here.

Related articles:

Do I need an inspection for my depreciation schedule?

How does claiming depreciation affect CGT?


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