If you are a property investor or anyone who owns income-producing property, you may want to hire a quantity surveyor in addition to your regular accountant. Wondering why it might be essential to have both of these professionals in your corner? Take a look at these facts.
1. Deductions on Income-Producing Properties Can Be Valuable
If you own investment properties and certain other types of assets, the Australian Taxation Office allows you to claim a deduction based on the depreciation of that asset. In order to make the claim, you need detailed records and receipts from the construction of that building.
If you have those records, you can simply give them to your accountant, and he or she can calculate the deduction for you. However, if you don't have clear records, then you'll need a quantity surveyor to estimate construction costs.
2. Only Quantity Surveyors Can Evaluate the Deduction
When you don't have records, the ATO only accepts valuation numbers from a quantity surveyor. By extension, that means that your accountant can't help you estimate these numbers and that you need to hire a professional. Quantity surveyors estimate costs all day long, and they have the experience to get you the best deduction possible.
3. Your Accountant Helps With the Rest of the Process
Once you have the construction-cost figures and other relevant numbers from the quantity surveyor, you can let your accountant handle the rest. He or she will help calculate your deduction based on your unique circumstances. For instance, if you are trying to claim the deduction for a rental property that you own, you may only be able to apply the deduction to the portion of the year during which the property was rented out.
4. Working Together Maximises Your Deduction
When you have a quantity surveyor work alongside of your accountant, those two professionals will work together to help ensure that you get the deduction that you deserve. To quickly explain how deductions work, imagine you have $50,000 in income, and you earn a $5,000 deduction. In this case, the ATO only applies income tax to $45,000 (the difference between your income and the deduction).
As you save money on your tax liability, you can reinvest that money back into your property or into other aspects of your business or personal life. To learn more, talk with your accountant or contact a quantity surveyor directly to talk about your tax return.