The past few years have thrown many challenges the way of private practice accountants, as well as those working within the property trust markets. Whether it’s been the rush of buying as we saw in 2007/08 period or the sell that has occurred in most recent times. It has been very hard to keep control and track of capital expenditure. It’s even harder when many never engage with the building or the people that manage assets directly. Now that we are in the world of hold and manage assets, it’s probably time to stop making do and to get engaged!

Napier & Blakeley, long recognised, as the market leader in property depreciation, see so many depreciation schedules that are not maintained as they should be. Assets that have long been removed from site still being depreciated and quite often representing large sums of money.
It is a regular occurrence and easy thing to do to simply adopt the vendors depreciation schedule. Tax law, however, 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. Continue reading →