Rental Properties

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Property investors to lose out from proposed budget changes

Property investors to lose out from proposed budget changes The 2017 Federal Budget, handed down by Treasurer Scott Morrison on Tuesday night, 9th May at 7:30pm AEST includes proposed changes which will affect residential property investors Australia-wide. The Australian Tax Office (ATO) allows owners of income producing property to claim depreciation deductions for the wear and tear that occurs to a building’s structure and the plant and equipment assets within. The proposed changes relate to the depreciation of plant and equipment assets and the eligibility to claim this deduction. Currently, investors are eligible to claim qualifying plant and equipment depreciation [...]

Furnish your pockets with the funds claimed from tax depreciation

Furnish your pockets with the funds claimed from depreciation Often property investors rent out their property fully furnished. Depreciating furniture can add thousands of dollars to the owners depreciation claim. The below table provides an example of the difference that claiming depreciation on a $16,000 furniture package could make to an investor who purchased a two bedroom two bathroom unit: It is important that a specialist Quantity Surveyor prepares a tax depreciation schedule for an investment property before the owner lodges their tax return. A Quantity Surveyor will carry out an inspection on the property to identify more plant and [...]

Depreciation for renovations made easy

Investment property owners often miss out on thousands of dollars due to two main reasons: They don’t know what depreciation entitlements they can claim for renovations or refurbishments to their investment property They don’t use a qualified Quantity Surveyor to prepare a tax depreciation schedule Follow the steps below to ensure your tax depreciation schedule is right the first time around. Understand scrapping Scrapping refers to the removal and disposal of any potentially depreciable asset from an investment property. When worn or old assets (like carpet and hot water systems) are replaced and scrapped, the owner of the property may [...]

Rental Property Expenses

Rental Property Expenses you can deduct in the income year incurred Generally you can claim an immediate deduction for expenses related to the management and maintenance of the property, including interest on loans. You can claim a deduction for these expenses only if you actually incur them and they are not paid by the tenant. If your property is negatively geared - that is, you borrowed money to buy the property and your net rental income after other expenses is less than the interest on the loan - you may be able to claim the full amount of rental expenses [...]

Common Tax Mistakes – Rental Properties

Rental properties: Avoiding common mistakes The ATO has identified a number of common mistakes in the tax returns of rental property owners. To help you, ATO has compiled a list of what you should do and common mistakes to avoid including: Construction costs Initial repairs and capital improvements Interest expense Legal expenses Travel expenses Apportionment of rental expenses Deductible borrowing expenses Ownership interests Construction costs Certain types of construction costs, including extensions, alterations and structural improvements, can be claimed as capital works deductions. However, the purchase cost of the land on which a rental property is constructed cannot [...]