John Mathew

Tax time is here – Are you paying too much tax ?

Tax timeDo you own or have you bought an investment property in the past financial year?

Or…  have you recently refurbished, altered or extended your investment property in the past financial year?

Or…  do you own an investment property but have never claimed depreciation in the past?

Or… own any property including commercial, retail, industrial, residential, pubs, clubs, sporting – we are experts in them all.

If your answer is yes to any of these questions then you may very well be paying too much tax on your income if you don’t claim your depreciation deductions. Continue reading

Tax time is coming – Are you paying too much tax ?

Do you own or have you bought an investment property in the past financial year?

Or…  have you recently refurbished, altered or extended your investment property in the past financial year?Tax time

Or…  do you own an investment property but have never claimed depreciation in the past?

Or… own any property including commercial, retail, industrial, residential, pubs, clubs, sporting – we are experts in them all.

If your answer is yes to any of these questions then you may very well be paying too much tax on your income if you don’t claim your depreciation deductions.

Property tax allowances (commonly known as depreciation) provide an opportunity for owners of income producing property to reduce their taxable income, thus reducing the tax payable.   Continue reading

Budget 2017 Depreciation Deductions

House roofsIn the Federal Budget on 9th May, depreciation allowances forming part of an investors income tax deductions for second hand residential investment properties were effectively killed off.

This will apply to the purchase of any second hand properties where the contract to buy is entered into after 7.30pm on 9th May 2017.

Contracts entered into prior to this date will be grandfathered and deductions will still be able to be claimed.

What this means is not entirely clear yet.

Will this mean, for example, that items previously considered to be plant and equipment and therefore deductible under Division 40 of the ITAA could now simply form part of the building and therefore become deductible as part of the building and included under Division 43 Capital Works deductions? Continue reading

Is your Lodgement day approaching ?

The end of the financial year has come and gone and if your tax lodgement day is approaching we can still assist you to maximise the tax deductions available on your investment property.

Not only can we assist you, we guarantee that you get maximum deductions and also be fully compliant with the A.T.O. as we are Registered Tax Practitioners.

Napier & Blakeley, the first Property Depreciation Company and still the best – just ask your Accountant.

Call Napier & Blakeley today for assistance with your Tax Depreciation Schedule or any other Napier & Blakeley services at any of our offices below:

Peter Osborn Backgroundv2
SYDNEY

Peter Osborn
Director – NSW, ACT
o.   02 9299 1899
m.  0439 765 571
e.   posborn@napierblakeley.com Continue reading

Stamp Duty Increase on Foreign purchasers of property

We wish to advise that the reported 3% stamp duty surcharge on foreign purchasers has been increased as per recent updates by the State Revenue Office for the state of Victoria only.

Please refer to the following for additional duty rates:

  • For contracts, transactions, agreements and arrangements entered into on or after 1 July 2015 but before 1 July 2016:

- the additional duty rate is 3% (even if the settlement date is on or after 1 July 2016).

  • For contracts, transactions, agreements and arrangements entered into on or after 1 July 2016:

-  the additional duty rate is 7%

Continue reading

It’s Tax Time

tax.time_-753x269Before you instruct us to do your detailed Depreciation Schedule, we can tell you how much your tax deduction will be.

Then… you can decide if we provide value for money.

So if you have…

  • Acquired an investment property of any age, type or in state of repair;
  • Completed any construction works;
  • Completed a fit out;
  • Had a tenant leave your property and you have inherited their fit out;
  • Had a tenant leave your property and you have removed their fit out and made good;
  • Paid any $ towards a tenant fit out. Continue reading

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: Continue reading

Negative Gearing – Property Depreciation get it while you can!

In recent years there has been much debate about the pros and cons of negative gearing in the property industry and what impact removing it from the investment horizon would make.

We get a call every day from clients about this and clearly it is an issue that will affect the investment activity of some investors in the property market.

Whilst recent announcements from politicians on both sides of politics have highlighted that negative gearing is in the cross hairs, it remains to be seen what might actually happen going forward.

We can however be sure (at this stage) that there are no moves afoot to make any changes to claiming property tax depreciation deductions on your investment property, so you can still enjoy these substantial benefits that will significantly enhance your investment cash flow and after tax return going forward. Continue reading

Tenants Leftovers – Landlords Bonus!

Empty-room 20.5.15If vacating tenants have left fixtures and fittings in your investment property, some of them may be eligible for depreciation claims.  KY Pih from Napier & Blakeley’s Brisbane office explains the principles.

Property tax depreciation has two parts:

(1)   Division 40 items are plant and equipment like carpets, vinyl, lights, air conditioners, curtains, fire equipment, and hot water units; and

(2)   Division 43 items are generally considered the ‘shell’ of the building and include things like walls, floors, ceilings, pipework, ductwork, etc.

If a tenant vacates and leaves Division 40 items behind, unfortunately the landlord is not entitled to claim depreciation on them because they did not incur the original expenditure.  However, the landlord can continue to use the fitout to generate further income. Continue reading

2015 Budget – Accelerated Depreciation for Primary Producer’s Analysis

Budget 2015The federal government will sanction all primary producers, an immediate deduction for the cost of new fencing and investment in water facilities (such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills).

The Government will additionally allow primary producers, a 3 year deprecation allowance for all capital expenditure on fodder storage assets (such as silos and tanks used to store grain and other animal feed).

Currently, the effective life of the above mentioned assets are:

  • Fences – up to 30 years
  • Fodder storage assets – up to 50 years
  • Water facilities – 3 years Continue reading