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I will inspect properties- I love getting out of the office and meeting clients/real estate agents/tenants. The real reason however that I, as a "senior QS", still continue to inspect investment properties is that is where you find the money.
Experience and a few questions help me find the tricks (in depreciation terms). And every property has a few depreciation tricks. As much as my competitors would love me to give a few examples, I can't do so in this forum, but give me a call.
I put my heart and soul into saving my client's money. A lot of people believe that I do so to overcompensate for the unprofessional way Parkinson's presents in my speech and walking.
This may be partially true but it's not the whole story. I work for the client not the ATO. I stick to the law; I wish I could say the same about the ATO. I will never knowingly break the tax laws in pursuit of saving my clients money. I just cannot accept the fact that between 66-80 % of all taxpayers with an investment property do not claim any depreciation.
Australia has one of the best and fairest depreciation regimes in the world and 2/3’s of owners are not even using it. And then of the 1/3 claiming depreciation, how many do you guess will get a good schedule done ...10%, 20%, 30%? Lets be kind and generously allow 20%. THAT MEANS THAT ONLY 7 % OF AUSTRALIAN PROPERTY OWNERS ARE CLAIMING THEIR LEGALLY ENTITLED DEDUCTIONS.
I will always use the "Cost to the Taxpayer Method" besides being to the investors benefit it's the law. I will always allow for Professional fees, council fees (excluding head works) and Preliminaries. I will use the Low Value Pool and 100 % items when it's in my client’s interest.
I will continue to specialise in depreciation, it makes it a lot easier to be good at my little bit. I will personally do all the technical work. I will never use "Cadets".
George Smit, Senior Quantity Surveyor
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