If you currently operate, or are looking to run a business from home, you may be entitled to claim depreciation for assets found within areas of the property used for income producing purposes.
NSW Small Business Commissioner statistics show that twenty per cent of all New South Wales small business operators work from home. The highest proportion of operators outside the Sydney GMR are located in the Hunter Valley and account for 6.5 per cent of small businesses in the state.
If you operate a small business from home, it’s important to ensure you are not missing out on significant depreciation deductions. A specialist Quantity Surveyor should be engaged to prepare an accurate depreciation schedule for the property.
You may ask the question, “Why can’t my Accountant do this for me?” The answer is simple. Quantity Surveyors are qualified under the tax ruling 97/25 to estimate the construction costs for depreciation purposes and are one of a few select professionals who specialise in providing property depreciation schedules.
A company such as BMT Tax Depreciation ensures that an expert Quantity Surveyor is sent out on site to measure and calculate the construction costs and the items contained within the business area. Various methods are used by Quantity Surveyors to accurately calculate the depreciation on assets.
What items could be claimed in your home office?
Quantity Surveyor’s have the skills necessary to identify all depreciation deductions available in the property. This ensures your claims are maximised whilst complying with Australian Taxation Office guidelines.
If you operate a business that requires the use of multiple areas of your home, a Quantity Surveyor can tailor your schedule to your situation. For example, if you own a bed and breakfast a site inspection will be conducted on the entire property and your Accountant will apportion the depreciation deductions accordingly.