Corporates Tax
Oct 20th, 2020 • Industry News • Business Loans
CORPORATES
Small Business Tax
Oct 7th, 2020 • Industry News
Small Business Tax
Changes to Negative Gearing Tax Deductions
Jul 11th, 2018 • Industry News • Investments
Travel expense deduction scrappedAs of July 1, 2017, property investors can no longer claim a tax deduction for travel to maintain, inspect or collect rent for their rental property. Likewise, you can no longer claim travel expenses for preparing the property for new tenants, or for visiting a real estate agent to discuss your property.
Investors who own property interstate will probably be the most affected by this change. If these changes do affect you, perhaps consider employing a property manager to perform some of these tasks for you, as their costs are usually still tax deductible. Talk to your accountant to find out more.
Depreciation deductions tightened
Depreciation is the decline in value of an asset with a limited life expectancy. Depreciating assets include carpets, furniture and appliances like water heaters and cookers (also known as plant and equipment).
Residential property investors can now only claim depreciation deductions for plant and equipment expenses if they purchased them. Previously, investors could claim plant and equipment depreciation on assets that were installed by a previous owner.
This “integrity measure”, introduced in last year’s Budget, was intended to prevent multiple property owners from depreciating the same assets, exceeding their actual value. The changes apply to second-hand plant and equipment acquired after last year’s Budget night (May 9, 2017). You also can’t claim a deduction for plant and equipment installed on or after July 1, 2017 if you have ever used it for private purposes.
If you owned or entered into a contract to buy your investment property before May 9, 2017, you will not be affected by these changes. You can still claim deductions for depreciating plant and equipment assets that were in the rental property before that date.
Further reading
You can find more information about the expenses you can claim for residential rental properties on the ATO website, available here. You’ll find details about expenses that are deductible immediately, such as management, maintenance and interest; and expenses that are deductible over several years, such as capital works and borrowing costs.
Your tax time checklist
Here are some tips to prepare for tax time:
- Update your Depreciation Schedule. You can find a Guide to depreciating assets 2018 here. If you’re confused, seek advice from your accountant. If it’s a new property investment, you may need to have a quantity surveyor prepare a Depreciation Schedule report.
- Understand what you can claim (refer to the ATO website for clarification).
- Get your documents together and organise your receipts.
- Tally up your deductions. It’s a good idea to create a spreadsheet with all your income and expenses listed. That way, you can save on accounting fees (rather than giving them a shoe box of receipts to go through).
- Book in with your accountant (they are flat out at tax time, so the sooner the better).
How to Invest on a Low Income
Sep 28th, 2017 • Industry News • Home Loans • Investments
How to invest on a low income
How to get the biggest ROI on an investment property
Sep 21st, 2017 • Industry News • Investments
How to get the biggest ROI on an investment property
Investment property refinance made easy!
Sep 8th, 2017 • Industry News • Investments
Talk to us and we’ll help you to decide! Despite recent tightening around investor lending, there are still some very competitive interest rates available from a variety of lenders. In this article, we cover some of the common questions we get from our property investor customers – and if you do decide you’re ready to refinance, you can rely on us to make it easy!
Income Protection Insurance
Aug 31st, 2017 • Industry News
Income Protection Insurance
Finance Made Simple
Aug 30th, 2017 • Industry News
Finance made simple
6 Reasons why property investment is more popular than ever
Jul 11th, 2017 • Investments
If you’re not sure, the sooner you talk to a qualified Financial Planner the better! And if you don’t have one, ask us for a referral to a reliable professional who can help you come up with an investment plan that’s right for your personal circumstances and goals. To get you started, here are six reasons why an ever increasing number of Australians are considering a property investment.
Why invest in commercial property
May 5th, 2017
In this article, we explore the reasons why people venture into commercial property investing, and some of the areas to be aware of. And if you do decide to go down the commercial route, we can hook you up with an investment loan that suits your situation and objectives!
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