Do not make the mistake of assuming that others know what they are looking for.

Did you hear the one about the Senate enquiry into two disappearing billiard tables?

These two tables used to be located in the parliament’s staff recreation area and when it was realised that they had disappeared a senate enquiry ensued to find out where they had gone and importantly $100,000 was spent to find the tables that had been sold for a sum total of $4,900.

How does that fit with you as a tax payer?

What this event does highlight is the fact that assets get added and disposed of every day in the property world. Sure items are removed and added with some people’s knowledge including the building managers and asset managers but more often than not this is where the information flow stops. The potential tax implications of this capital expenditure and disposal are often not considered, often missed or not maximised are events such as landlord contributions for fit outs and any reversionary depreciation opportunities.

If this information does make it to the accounts team, then often the information is incomplete or poorly described. What this means is that asset registers become large and unmanageable and there is therefore no way of clearly tracking the assets that are actually held and owned by the landlord. Overall this means that year on year depreciation diminishes in your tax schedules rather than rising and falling in line with the capex or replacement activity that naturally occurs with your assets. This exercise also makes the audit process easier across a whole portfolio basis.

A Napier & Blakeley health check focuses on your existing asset registers and tax depreciation claims. We highlight the opportunities for write-offs, reversionary depreciation, landlord contributions and even the initial basis of the depreciation claim. We do this because we know not everyone has the knowledge or even the time to do a whole asset review; we also know that in more than 80% of occasions we can significantly increase both the overall deductions available and also year by year returns.

Whilst it may have cost the tax payer over $100,000 to discover what happened to their (our) billiard tables, a Napier & Blakeley fee will be a lot cheaper yet so much more rewarding.

Finally you will always have to pay for capital expenditure and from a landlord perspective the costs of tenant incentives are always going to be around, by effectively claiming your depreciation and write-offs at least a little bit of the sting can be taken out of this expenditure.

Most accountants recognise that using a Quantity Surveyor saves time and money and puts you in the driving seat when it comes to good asset management; ask yours how they are making the most of the opportunities available to you.

Napier & Blakeley is the most relied upon Quantity Surveying firm in the matter of maximising the benefits that Tax Depreciation can provide to the bottom line, make us part of your good asset management.

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Please contact us for our Property Tax data card.

Our strategic, cost effective advice will best position your property for the future.

Call Napier & Blakeley today if you want further information or regarding any other Napier & Blakeley services.