Posts Tagged ‘Depreciation’

Rental Properties: Repairs Versus Improvements

If you own an investment property knowing the difference between a rental property repair as opposed to an improvement is essential, in particular when it comes to boosting the returns of your property and maximising tax benefits. The Australian Taxation Office (ATO) has cracked down on property owners after receiving a multitude of incorrect claims; and they treat these two terms differently.
What counts as Repairs and Maintenance?
The easiest way to … Read the full post »

New or Old?

When it comes time to consider investing in property, many discussions arise around the question of the benefits of purchasing new, as opposed to old.  Which is better, particularly from a depreciation point of view? Whilst there is no black or white answer, generally if you are focused on capital allowance deductions then new is the way to go.

Why new?  What are the benefits?

The main benefit of buying a new … Read the full post »

Investment Property Depreciation: How Does It Work?

Investment property depreciation can save investors thousands of dollars each year, minimising your tax and maximising your cash flow.  Depreciation is classed as a non-cash deduction, meaning that investors do not need to spend any money in order to claim it.

Below is a basic summation of what property depreciation is and how it works.   

What is property depreciation?

As a property ages, its structure, and the assets within it wear out … Read the full post »

Property Flippers & Depreciation!

Last week we talked about capital gains tax deductions, this week we are highlighting legislation changes from late last year that changed the way depreciation for pre-existing plant and equipment found in second hand properties will be treated.  Plant and equipment depreciation cover all removable and mechanical assets which generally depreciate faster than the building.

What is ‘property flipping’?

Property flipping occurs when an investor buys, renovates and resells a property within … Read the full post »

Capital Gains Tax Exemptions

Introduced in September 1985 by the federal government of the time, capital gains tax (CGT) is the tax payable on the difference between what it costs you to purchase an asset and the amount received when you dispose of it. It can be quite complex, as legislation has been changed over time surrounding this issue.

It is worth noting there are a number of exemptions which may apply, meaning that investors … Read the full post »

Maximising Depreciation Benefits – Think OUTSIDE not just Inside!

Happy EOFY (End of Financial Year). Now is a timely reminder for investors to analyse some of the structures and improvements not just on the inside, but also the outside of their properties, as these items endure wear and tear over the years, and therefore may be eligible as a depreciation deduction.

The Australian Taxation Office (ATO) allows owners of income producing properties to claim depreciation deductions when they submit their … Read the full post »