There is profit in renovating and repairing your property apart from what you get in merely investing in purchasing one. You think you have two options: you can either sell it at a higher price or rent it out. Either way, you may get exposed to the risks of losing a sale and get bombarded with maintenance fees, respectively. But then again, there is profit in making necessary renovations and repairs particularly through depreciation.
For those who do not know yet, you can actually apply depreciation against your taxable income and enjoy savings during the tax season. You can claim the tax depreciation through through Plant and Equipment and Building Allowance. The items you use inside the building such as machineries, carpets, and ovens, among others are covered by the Plant and Equipment while the construction cost of the property is covered by the Building Allowance what does a quantity surveyor do.
There is a cutoff date in filing for depreciation. You can file for both the Plant and Equipment and Building Allowance claims if your property was constructed before July 1985. The cutoff dates for the commercial properties are different from the residential units.
You need to consult a quantity surveyor to start processing this entitlement. You need a depreciation schedule that outlines the deductions from your investment property. Your goal is to pay less tax. You cannot hire a tax accountant to estimate the construction costs even though you can always ask for advice on the matter.
It is the job of a quantity surveyor to inspect your property in preparation for property depreciation schedules. Basically, the amount of savings you get from tax depreciation matters on how experienced and reliable is your surveyor for the job. It is highly recommended by the experts to work only with a member of Australian Institute of Quantity Surveyors (AIQS) so as to make sure that he is qualified to get you all the necessary deductions.
Your savings from property depreciation will vary on the type of property you have in terms of its age, use, and fitout. The fees for getting a depreciation schedule will also vary on the property type as well as on the location, size, and other important factors. You need to know though that depreciation schedules 100 percent tax deductible. You get to save a lot from claiming depreciation and deductions on the depreciation schedule fees. A job well-done by your quantity surveyor should mean a thousand dollars more to your savings.