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.

One thing is certain, the value of the dollar today is significantly more than the value of the dollar tomorrow!

The opportunity to improve your LVR’s today and reduce your financial risk providing real cash flow to allow appropriate capex management of the asset is invaluable.

In most instances the sums are not small! So what dollars are you really missing out on?

Don’t miss out on the benefits !

Contact Napier & Blakeley and let the industries original depreciation expert and trusted advisors help you to maximise your return this financial year.

 Contacts

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com
Adam Greene – 07 3221 8255 – agreene@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com