On the 18^th August 2014, the ATO released an article highlighting the plan to investigate and analyse rental property deductions.

Within the article, the ATO states they will be reviewing and ensuring each property investor has correctly apportioned property depreciation allowances.

We continually strive to educate all investors the difference between capital improvements, repairs and maintenance items and also clarify which are structural improvements. Our reports have highlighted these costs in the correct categories for the last 24 years.

Our services are carried out by our in-house specialist tax surveyors who are all accredited tax agents (Tax Agents Services Act 2009) for the purposes of preparing depreciation schedules. Our in-house research enables us to keep at the forefront of the ATO requirements. This enables our clients to maximise their position with the surety that they comply with the tax act.

Our experience in preparing property depreciation reports means you can be confident that the deductions you are claiming are correct.  Please don’t hesitate to contact one of our Registered Tax Agents.

Refer to this link for more information on this article.

Contact Us Now:

Property Depreciation & Insurance
MELBOURNE
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
SYDNEY
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com
BRISBANE
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com
NATIONAL RESIDENTIAL MANAGER
Kath Hemphill – 1300 730 382 – khemphill@napierblakeley.com

The Commissioner has made a determination of the effective life of certain depreciating assets. This will take effect from 1 July 2013. If you have your property or business in the following ANZIC categories this will affect reporting on your new purchases after July 1 2013 of Division 40 Plant/Assets.

Industries and industry activities affected are:

• Ammonia and ammonium nitrate manufacturing (fertiliser, dyes, herbicides)
• Meat processing (beef, pig & sheep abattoirs – not chicken)
• “Non-ferrous metal casting (aluminium)
• Pet food manufacturing (canned, bird feed, cereal for fodder, sheep lick)
• Prefabricated concrete manufacturing (precast walls, panels)
• Sanitary paper product manufacturing (toilet paper, tissues, napkins)

Determinations made by The Commissioner for the effective life and depreciation assets, has been applied for the purpose of provisions under division 40, which will be effective in the life of depreciating assets. This will be used to work out the assets decline in value.

The above Ruling also discusses the methodology used by the Commissioner of Taxation in making a determination of the effective life of depreciating assets under section 40-100 of the Income Tax Assessment Act 1997 (ITAA 1997).   It is important to note that effective lives for various items commonly found in commercial real estate has also been amended as a result of TR 2013/14.

If a depreciating asset has been purchased for use within a five year period, the effective life that will apply is the one in force from the date the depreciating asset is first used or installed.

The effective life determination and the period of the depreciating asset can be used for the purpose specified in subsection 40-100(5) (a specified purpose3). This can be used for taxable purposes and deductions may be available under Division 40 for the depreciating assets decline in value (see section 40-25).

Napier & Blakeley were the first to prepare audited depreciation schedules in Australia and we continue to keep our knowledge and experience current for our client’s benefits.

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
Paul Mazoletti – 07 3221 8255 – pmazoletti@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

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@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

Napier & Blakeley have prepared depreciation schedules for property investors for over 25 years and are the most knowledgeable company in Australia in this space, having introduced this service to the Australian property market and developed it into what it is today.

Our clients are many and loyal and are always impressed with our expertise and our efficiency, maximising their after tax property returns, creating more free cash flow and actually assisting them in structuring and managing the future of their asset.

Every year we are ready at this time of year to deliver your property depreciation needs efficiently, as we know it is tax time and we understand what investors need and how to assist them with their annual returns.

Investors can claim on most income producing property, large or small, young or old.  If you’ve bought, renovated, extended, or even demolished all or part of it, there may be claims to be made that will assist you with your tax and therefore your free cash flow going forward.

If you are in any doubt or not sure what to do … ring, email or write to us and we will help. We can tell you what you will get before you get it, we will guarantee our results and we will help you should you ever be audited.

It’s our present to you – a Depreciation Schedule – the gift that keeps on giving.

Contact

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1299 – pguerra@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@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