The dynamics of the property market have changed considerably over the last few months, interest rates are higher, debt is more expensive, credit is harder to get, and equities have been savaged – but in all this uncertainty their remains a true constant that provides real benefit to property investors – and it’s provided by the ATO.

Both investment property cash flow and after tax return can be significantly increased by  correctly establishing the basis for depreciation schedules at the point of acquisition, and then by really managing available deductions throughout the life of a property.

Napier & Blakeley are the original specialists in this area and our PTP – “property tax profiling” establishes a basis for deductions and then analyses further capital expenditure through refurbishment or redevelopment, repairs and maintenance and the area that is usually always missed, write offs for demolished items.

Items of both plant and building that are demolished or replaced during a financial year can be written off at 100% of their remaining tax value as at the time of demolition or destruction.

It’s therefore critical to correctly establish base values from which to work and catalogue all changes throughout the year – there is true value in doing so.