Although business assets depreciate over time, the fact that you can claim a certain amount of money from wear and tear makes up for the reduced value. However, the only way you can claim depreciation on business assets is to prepare a valid schedule and submit it to the Australian Tax Office (ATO). Unfortunately, most startups think they can rely on an accountant to prepare a tax depreciation schedule. While it is true that tax accountants know much about tax laws, they know little about buildings and equipment. Therefore, since tax depreciation focuses on facilities and equipment, a qualified quantity surveyor is the right professional to contact. Here are the reasons.
It is a Requirement for a Valid Schedule — One of the primary reasons businesses must seek the services of a quantity surveyor for their tax depreciation schedule is that it is a requirement by the ATO. The figures and estimates on your schedule might be up to scratch; however, it will be useless if a qualified quantity surveyor does not prepare it. It is easy for the ATO to establish the information because all tax depreciation schedules must contain the professional data of a quantity surveyor. A quick search by ATO agents will reveal whether the quantity surveyor exists and is qualified to provide the services they claim to offer. Only tax reports that meet the requirement proceed to the next stage.
Maximise your Claims — A qualified tax accountant can help your business save a lot of money by looking at the different ways you can apply current tax laws to your advantage. For instance, donating part of business revenue to charity reduces the taxable income and increases claims. A professional quantity surveyor can help you in a similar way because they understand how to navigate depreciation laws and regulations. For instance, a quantity surveyor can advise you to buy and complete renovating a building that had been partially upgraded. Although you will be responsible for renovating part of the structure, a quantity surveyor can prepare a tax schedule that guarantees maximum tax benefits on the entire project.
Keeps Up-to-Date with ATO Regulations — The Australian Tax Office often updates its regulations and requirements regarding tax depreciation schedules. Keeping tabs on the changes is essential for any business that wants to maximise its tax benefits, remain compliant, and avoid unnecessary fines. A quantity surveyor is better placed since they deal with building costing issues every day. For instance, a few years ago, the ATO introduced a provision that allows investors to examine their tax returns for the previous two years to amend their claims. Only companies that used surveyors to take advantage of the provision benefited during that tax season.
For more information on a tax depreciation schedule, contact a professional near you.