News

Damage or destruction of a rental property

Damage or destruction of a rental property

March 3, 2020

What happens if your property is damaged from the results of a natural disaster, or by tenants? Such a situation can affect the types of expenses you claim and the income you need to declare for your rental property. Declaring income If you receive a payout for damage to your rental property as a result…

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Selling taxable Australian property

Selling taxable Australian property. Need a clearance certificate from the ATO?

March 3, 2020

Photo by Tierra Mallorca on Unsplash If an Australian resident is considering selling property, they should apply for an ATO clearance certificate. If a property vendor does not apply for a clearance certificate and present it to the purchaser, the purchaser is required to withhold 12.5% of the purchase price for CGT purposes on properties…

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First Home Super Saver scheme

What you need to know about the First Home Super Saver scheme

February 4, 2020

Photo by Sandy Millar on Unsplash The First Home Super Saver (FHSS) scheme was introduced a couple of years ago with an aim to reduce pressure on housing affordability. The scheme allows eligible taxpayers to save money for their first home inside the superannuation system. The government says this concessionally taxed environment will help first…

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CGT when spouses have different main residences

CGT when spouses have different main residences

October 1, 2019

It can sometimes be the case that spouses can have different main residences at the same time. When this occurs, special CGT rules apply to in effect provide only one CGT main residence exemption over this period. However, important decisions and choices may need to be made to optimise the tax outcome in this case…

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Property development and tax

Property development and tax

September 2, 2019

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO can include whether an agreement to develop and sell land is a “mere realisation” or a disposal either in the course of a business or as part…

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CGT exemption on inherited homes

CGT exemption on inherited homes

September 2, 2019

Inheriting a home or a legal interest in one could be the largest windfall gain that many Australians ever experience. From a tax law perspective, when someone dies a capital gain or loss does not apply when a property passes: to the deceased person’s beneficiary to the deceased person’s executor or other legal personal representative…

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Rental property owners Top 10 tips to avoid common mistakes

Rental property owners: Top 10 tips to avoid common mistakes

September 2, 2019

The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to avoid them. 1 APPORTIONING EXPENSES AND INCOME FOR CO-OWNED…

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Rental travel expenses mostly off the table

Rental travel expenses mostly off the table

March 1, 2019

The ATO recently highlighted significant non-compliance with the rules prohibiting taxpayers claiming travel expenses related to residential rental properties. Late last calendar year, the ATO revealed that it had identified 26,000 taxpayers who had incorrectly claimed deductions for travel to rental properties during tax time 2018, despite recent changes to the law in this area.…

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When valuations of property are important for tax

When valuations of property are important for tax

March 1, 2019

There are times when getting a valuation becomes necessary, especially to estimate the cost of transactions that are not arm’s- length or when no actual cash changes hands. A common example of this is in respect of property, and especially for transactions when a valuation is necessary for tax purposes. For example, let’s say that…

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Renting out part or all of your home

Renting out part or all of your home

November 6, 2018

If you rent out part or all of your home, the rent money you receive is generally regarded as assessable income. This means: you must declare your rental income in your income tax return, and you can claim deductions for the associated expenses you may not be entitled to the full main residence exemption from…

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