Tax time is here again!

tax world cut outThe end of the financial year is upon us and we want to make sure you’ve got all your property tax bases covered!

If during the past few or this current financial year you’ve owned (or updated) an investment property and earned an assessable income from it then you are likely entitled to tax deductions and allowances or otherwise commonly called property tax depreciation.

For over 30 years Napier & Blakeley has analysed many thousands of properties, preparing property tax depreciation schedules for owners of virtually every type of property ranging in value from a few hundred thousand dollars to billions. There are well in excess of three million property investors within Australia and the majority of these owners are not likely to fully maximise available deductions, which can significantly affect and increase their after tax yields and cash flow.

In a recent analysis of a five year old commercial office building with a purchase price of $5m, a land value of $1m and an income of $500,000 we found the following;

If you claimed no depreciation and building allowances, your after tax income at the following rates would be:

47%  =  (highest individual tax rate) =  $265,000
30%  =  (company tax rate) =  $350,000
15%  =  (superannuation fund tax rate) =  $425,000

However, if you did claim the available deductions and allowances your after tax income could be greatly increased:

47%  =  $347,000 a 31% increase in after tax return
30%  =  $409,000 a 17% increase in after tax return
15%  =  $455,000 a   7% increase in after tax return

There are some questions you should ask yourself about your properties:
1.  Have you acquired an investment property of any age, type or in state of repair?
2.  Have you completed any construction works?
3.  Have you completed a fit out?
4.  Has a tenant left your property and you have inherited their fit out?
5.  Has a tenant left your property and you have removed their fit out and made good?
6.  Have you paid any $ towards a tenant fit out?
If you have answered yes to any of these items and have not yet had your property tax depreciation schedules updated, you may well be missing out!

Contact Napier & Blakeley today and ensure that your position is maximised at tax time!

Paul Mazoletti Backgroundv2  Peter Osborn Backgroundv2
Paul Mazoletti
National Director
o.  07 3221 8255
m. 0408 749 202
e. pmazoletti@napierblakeley.com
Peter Osborn
Director – NSW, ACT
o.  02 9299 1899
m. 0439 765 571
e.  posborn@napierblakeley.com
 John Mathew Backgroundv2  Kath_BrownBackground 3
John Mathew
Director – VIC, TAS, SA, WA
o.  03 9915 6300
m. 0414 559 326
e. jmathew@napierblakeley.com
Kath Hemphill
National Residential Manager
o.  07 3221 8255
m. 0409 722 709
e. khemphill@napierblakeley.com

 

 

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