Quantity surveyors produce a detailed depreciation schedule to help investors boost their cash return each financial year.
Depreciation is one of the most under claimed deductions that property investors fail to take advantage of. A specialist quantity surveyor will prepare a depreciation schedule that outlines all of the deductions the owner of a property can claim for both structural items and plant and equipment assets. An owner and their accountant will then use this schedule to implement the correct deductions when they go to lodge their income tax return.
It is crucial that property owners choose a depreciation schedule from a quantity surveyor who offers a site inspection. If they do not inspect the property, it is possible that many of the plant and equipment assets within the property will be neglected in the final report.
A quantity surveyor uses both the prime cost and diminishing value methods of depreciation to calculate depreciation deductions. An investor should confer with their accountant about what method is most appropriate for their circumstances.