Depreciation Schedules and ATO Audits
“I have been told that if I use a Quantity Surveyor’s report for the depreciation schedule the ATO are more likely to audit you is this true?”
Actually no, this is not true, the ATO carry out random audits and they don’t know if you have a report or not, as your Accountant submits the figures and percentages on your behalf on your Tax Return.
If you have a Quantity Surveyor’s report then the figures should be more likely to withstand an audit compared to doing a report yourself or allowing your Accountant to have a go on your behalf.
If you have chosen a reputable Quantity Surveying Company then the ATO will generally allow the Quantity Surveyor’s estimates, as these are Qualified Professionals that the ATO recommends.
“How do you find a reputable Company?”
This one is easy; make sure that the Company you use are members of the Australian Institute of Quantity Surveyors and/or members of the Royal Institution of Chartered Surveyors. This will ensure that they are qualified and hold the relevant Professional Insurances and that they are accountable to the relevant institution.
Finally, remember that the Quantity Surveyor’s Fee is 100% tax deductible.
Thank you to Andrew B. for a great question.
Happy Investing!
Filed Under: Property Investment Tips • Tax Tips
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