Have you been scrutinising your Depreciation & Asset Registers?
Now that we are in the world of hold and manage assets, it’s probably time to stop making do and get engaged!
It is a regular occurrence and easy thing to simply adopt the vendor’s depreciation schedule. Tax law allows a purchaser to apportion values to all depreciating assets they acquire, i.e. air conditioning, lifts, carpet, chattels, etc. to reflect the cost of the asset as acquired by the purchaser. In a rising market this may even represent a value that is more than its original replacement cost.
On a recent assessment of a property that was acquired by a client for around $15million, the apportioned value of depreciable plant was a staggering $4million more than the vendor’s written down value. The tax sheltered amount increased $3million in the first 10 years of ownership. Assuming a tax rate of 30%, the increased cash value in the first year alone was $220,000 with the ten year tax deferral being $1.8million. Continue reading
Napier & Blakeley announces its acquisition of Emancium Pty Ltd, which it has re-branded Napier & Blakeley Emancium Pty Ltd.
will provide specialised advice in relation to the efficient operations and lifecycle management of building assets including the identification, development, facilitation and validation of sophisticated and innovative financial and engineering solutions designed to reduce operational costs, manage risk, improve yield and increase asset values.
The acquisition strengthens Napier & Blakeley’s existing position in its world class provision of property due diligence services as well of benchmarking buildings for energy efficiency, operational performance and future capital expenditure. It also sets Napier & Blakeley apart in the use of the unique IT based platform. Continue reading →