While the world of money may seem kind of complicated, it is, in fact, extremely simple. In most cases, you are either a lender or a borrower of cash. Understanding what it means to borrow money by taking out a loan or credit card can help you to get the best deal. The same can be said about understanding how you can invest your money by lending it to banks or other organisations. For the past year or so, we have been researching these subjects and speaking to financial professionals. On this blog, we will be looking at how you can get the best deal when lending or borrowing money. Please check out the articles below for more info.
Property investors are entitled to tax deductions every financial year, and this could run in the thousands of dollars. The deductions are beneficial for young investors since they go a long way in increasing savings, which is crucial for the successful management of properties. However, claiming deductions on your property can only be done by preparing a tax depreciation report, which indicates the depreciating value of all your investments. That said, it is not enough to rely solely on your accountant to prepare a tax depreciation report. The most important professional you need in this regard is a quantity surveyor. This article highlights the reasons why.
Protect Property Investors -- One of the primary functions of the Australia Tax Office (ATO) is to protect property investors. The organisation believes that the best way to protect property investors is to provide advice concerning property depreciation. The only professional that the ATO can rely upon to produce a detailed tax depreciation report that protects investors is a quantity surveyor. It is for this reason that the Australian Tax Office only accepts tax depreciation reports from a quantity surveyor. If you show up with a tax depreciation report prepared by an accountant only, you will not receive your deduction claim.
Understand Building and Equipment Costing -- A tax depreciation report needs to be as accurate as possible. However, it is only possible if you measure and value building materials accurately. Also, the measurements and calculations are essential during renovations. Due to the complex nature of depreciating old structures, you need a licensed quantity surveyor because they understand how to evaluate building works and associated expenses. An auditor and a tax accountant are only confident preparing a tax depreciation report if the cost of a structure is known.
Personalised Reports -- While some property documents can be transferred from a seller to a buyer, a tax depreciation schedule is not one of them. Unfortunately, some property investors believe they can do this; therefore, they instruct their tax accountants to prepare a tax depreciation report. See, a tax depreciation report is a personalised document prepared for individual property owners. In contrast, older reports rarely capture improvements to a property after issuance. Therefore, old records do not provide an accurate picture of the depreciation value of a property, which can lead to an inaccurate tax depreciation report. Thus, even if a property seller offers their own tax depreciation report, make sure you hire a quantity surveyor to prepare a personalised one.
To learn more, contact a resource that offers tax depreciation reports.