The “Purchase Price Allocation” requirement (PPA)
We cannot stress enough the IMPORTANCE of taking professional advice on this as soon as possible in the Sale and Purchase process. This is for both VENDORS and PURCHASERS. Getting this right OR wrong can be the difference in tens, or hundreds, of thousands of dollars.
Thinking of BUYING or SELLING, please get in contact now.
Just SOLD or PURCHASED, please get in contact now, advice is free.
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PPA – Satge 1 – Sale and Purchase contract
Stage 1 will be raised by the Real Estate Agent and is to formalise between the Purchaser and Vendor, an agreement for the allocation of the purchase price to
- “depreciable” and
- “non depreciable” items.
- TAKE ADVICE before agreeing to any figures here.
PPA – Stage 2 – VALUIT Commercial Max
Stage 2 is to further split the value of “depreciable” items into all of the individual asset categories for depreciation to maximise your deprecaition. This is our COMMERCIAL MAX Service. This is completed at any stage before OR after settlement.
- Depreciable Property
- Buildings
- Plumbing
- Electrical wiring ……..and much more
Unlock the Value of Your Commercial Property with a PPA. As a recent purchaser of commercial property, you’ve made a substantial investment. But are you fully aware of the tangible and intangible benefits that a STAGE 2 COMMERCIAL MAX Purchase Price Allocation (PPA) can bring to your investment?
Why a PPA is Essential for Commercial Property Owners. A Purchase Price Allocation (PPA) goes beyond being a mere requirement for commercial property owners; it serves as a financial strategy that can yield significant benefits. Firstly, a PPA enables the identification and separation of the value of depreciable and non-depreciable assets. Moreover, at PPA STAGE 2, the COMMERCIAL MAX ensures the segregation of depreciable assets, thereby maximizing depreciation and the resulting cashflow advantages.
Maximise Your Tax Benefits with a PPA. Secondly, a STAGE 2 COMMERCIAL MAX PPA can provide significant tax benefits. By accurately separating and identifying your assets, a COMMERCIAL MAX PPA allows you to depreciate assets over a shorter period, potentially leading to significant tax savings.
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