Posts Tagged ‘Tax Deductions’

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 »

New Financial Year

We are now into week three of a new financial year, and no doubt some of you have already lodged your tax returns or are in the process of…particularly if you are expecting a refund.

The start of a new tax year often brings some changes…this year there are some particularly significant changes that have taken place, summarised below.

Superannuation:

Second Round of early access: from 1 July 2020 until 24 September … Read the full post »

REIQ Call on Government to Assist Housing Industry

In the wake of the COVID-19 pandemic, the Real Estate Institute of Queensland (REIQ) is seeking urgent action from the Queensland State Government to assist in maintaining the stability of the Queensland Property Market – worth in excess of over $1 trillion, and directly employing over 50,000 workers, with many more employed in associated industries.  Activity in the real estate sector contributes in excess of $30 billion annually to the … Read the full post »

Increase Rental Income & Deductions!

Australia’s renovations industry appears to be profiting from weaker economic conditions and tighter lending standards, with alterations and additions to residential buildings hitting a historic high recently.

Australian Bureau of Statistics Building Activity data showed a 6.6 percent increase in alterations and additions in 2018; this trend has continued into 2019 on the back of a softer market, indicating homeowners and investors seeking to improve capital values and increase rental income … 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 »

Federal Budget 2018/19

The Federal Budget was presented on Tuesday evening by Treasurer Scott Morrison, with a major focus on taxation reform, including tax cuts for low to middle income earners, and future abolition of one of the tax brackets to eliminate the disincentive of ‘bracket creep’.

Issues like housing affordability were not addressed; however, incentives have been offered for pensioners with significant equity in their place of residence to draw on this equity … Read the full post »