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At this time of year we all focus on what tax advantages are available to us in the course of owning and maintaining our property. |
One of the areas of tax benefit that is often overlooked is the ability to claim for the value of write off’s and claims for building alterations that have been carried out on an asset over the past financial year. These benefits are available even if the construction work is not complete.
Both plant and building items that have been demolished or replaced during a financial year can be written off at 100% of their residual tax value at the time of demolition or destruction. We have listed below some key areas that will assist in maximising the benefits potentially available to you.
1. Always obtain specific advice from your accountant before acquiring an asset including ensuring that there are no depreciation values imposed in the contract of sale.
2. Ensure accurate depreciation reports are prepared at the time of acquisition or construction. This should include a visual inspection and full photographic record of the property.
3. Before carrying out any demolition works identify assets that are to be disposed of within your fixed asset register or depreciation schedules.
4. At the conclusion of any alteration works obtain a depreciation report for those works that have been carried out including a write off report for those assets that have been demolished.
5. Depreciation may be claimed from the date of completion of the works. However, claims for write offs may be claimed in the financial year in which the demolition has occurred.
6. Professional fees associated with the preparation of tax depreciation schedules are deductible in your tax return.
Napier & Blakeley has been the market leader in maximising tax depreciation for over 21 years.
For more information on how Napier & Blakeley can assist you, please call (02) 9299 1899 or visit www.napierblakeley.com
Article supplied by Napier & Blakeley
