Will your Tax Depreciation Report Withstand an Audit?

This is the fifth of seven special contributions to our blog from Tracey Lunniss, quantity surveyor, director of TSL Project Services Pty Ltd, our expert advisor on tax depreciation reports for investment property.

"A compromise on your Tax Depreciation Report will not withstand an ATO Audit."

A good quality, comprehensive Tax Depreciation Report should:
  • Include photographs of your building and plant
  • Contain an indicative plan of the building
  • Have a breakdown of Capital Allowances
  • Have a breakdown of Plant and Articles
  • Have backdated reports to the date of purchase (although you can only claim previous four years)
  • Include a full 40 year schedule
  • Be fully certified by a member of the Australian Institute of Quantity Surveyors

Your report should be more than a few pages of figures. Anything less than above is both a compromise and unlikely to withstand an ATO audit. How much would it cost for your accountant to chase up any information if you are audited at $200 to $300 per hour?

This report was brought to you by:
Tracey Lunniss, BSc (Hons) (QS), MRICS, AAQIS, Chartered Quantity Surveyor and Associate Director TSL Project Services Pty. Ltd.
National Office: Unit 10 / Knobel Court, Hyperdome Technology Park Commercial Centre,Shailer Park, QLD, 4128Tel: 1300 792 360
Web site: www.tslprojectservices.com.au/
Email: tracey@tslprojectservices.com.au

David Maynard - My Tax Zone

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