Are you a building half-full, or a building half-empty sort of person?
Either way, Capital Expenditure will still be required and Napier & Blakeley can assist in its quantification, importance, relevance and timing, depending on your plans.
Alternatively, and coming from the other direction, we can work with you on developing your capex profiles, which may assist you in making your plans. Together, we then might fine-tune the timing and the scope of the forecast works so it all fits together nicely.
Some Plans that come to mind:
Sale Ready: if you have decided to bring forward the sale of a building, bring us in. We can assess what needs to be done to your buildings in readiness. Napier & Blakeley have a global recognition and acceptance in the provision of Vendor Technical Due Diligence.
Long term hold: with the potential short to medium term impact on valuations, or perhaps extended lease terms, you may decide to hold the property for longer than first planned. Future capex should be assessed to reflect this extended period, so that expenditure is allocated to the right things and at the right time. Continue reading
Economic Stimulus Packages Aids Asset Write Offs
Following the Federal Government’s announcement of a raft of stimulus initiatives, N&B Director John Mathew has summarised how businesses can benefit from an immediate write off of their depreciating assets.
The ruling applies to assets costing $150,000 or less for eligible business, these being a business with an aggregated turnover of less than $500 million effective from 12 March 2020. The interesting part is that the date range for when assets are first used or installed ready for use is 12 March through to 30 June 2020.
Over a career preparing depreciation schedules, John commonly sees tax registers typically capitalising on all work carried out for a year, and then depreciation is calculated from the following year.
The other extreme is that monthly progress payments for multiple separate projects are capitalised and depreciated on a monthly basis although tax law requires a “project to be completed” (ready for use) before a depreciation charge can be taken. Continue reading
