ATO on the warpath in 2018 financial year

The ATO has devoted substantial funds to extra audit activity in the 2018 financial year. Areas being targeted are..

Property investors - Things to consider when claiming depreciation

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Tips to ensure no item is missed and to maximise their depreciation deductions: 1.Take note of the assets included in the above table 2.If you have a depreciation schedule and you own any of these assets, confirm with your Accountant that they are included in your schedule and your depreciation claim. If items have been missed, the Australian Taxation Office will allow you to go back and amend the previous two years of missed deductions 3.If you don’t have a depreciation schedule you should talk to a specialist Quantity Surveyor as soon as possible 4.Ensure your specialist Quantity Surveyor can outline the deductions available for assets which are eligible* to be written off immediately or added to the low-value pool

Proposed changes to Residential Property legislation

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Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets. They can claim deductions on plant and equipment items they purchase and directly incur the expense. Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously. Investors should note that these changes are not yet law, as the legislation still needs to be passed through the senate for confirmation

Trend sees home Owners becoming Investors

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Significant number of home owners are recognising the additional value of renting out their home rather than selling.The most common reason is usually due to the prospect of long term capital growth along with the opportunity to use equity to finance the next home and avoid selling costs.The Australian Taxation Office requires owners of investment properties to report any income they earn. They also allow owners of income producing properties to claim the expenses associated with the property.

RAJS TAX TIPS Oct 2017

Passive Investment Companies will not qualify for the Lower Income Tax offset. Pay your Super on time.. Government is watching The Employers who does not pay on time. Your Income must match your lifestyle expenses You must keep detailed and proper records to justify your Income that is reported.

Treasury Laws Amendment Bill to impact property Investors

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Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets. They can claim deductions on plant and equipment items they purchase and directly incur the expense. Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously. Investors should note that these changes are not yet law, as the legislation still needs to be passed through the senate for confirmation

Will a house or a unit provide optimal depreciation deductions?

Houses versus units ATO ruling makes common area claims less complex One question we’re often asked by investors is ‘will a house or a unit provide better depreciation deductions?’ This is a frequent question asked during the pre-purchase…

How to add value and increase deductions when renovating

Don’t be strapped for cash, scrap for cash Add value and increase deductions when renovating Australians have always had a passion for renovating property and recent predictions on renovation spending for 2016 suggest this trend will continue. Data…

Depreciation Benefits available for New Houses

Building more value, depreciation and new houses Choosing to build a brand new home rather than buy an existing property provides a number of benefits for potential investors. Generally these types of properties will be built in a developing…

Are you claiming the correct private health insurance rebate?

Claiming the private health insurance rebate In order to encourage Australians to take out private health insurance, most people receive a rebate on their premiums from the government. This increases the affordability of private health insurance…