Category Archives: Property

ATO waves a red flag on deductions for holiday rentals

Just when many Australians are considering getting away for a mid-winter break, the ATO is reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia. The ATO recently issued a statement saying … Continue reading

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The CGT implications of subdividing and building on the family property

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. If you have the … Continue reading

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Renting out part or all of your home

Generally, if you rent out part or all of your home, the rent money you receive is assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any … Continue reading

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Real estate: Buyers turned into tax collectors

New withholding rules on the sale of property by foreign residents have been introduced. This essentially turns property buyers into potential tax collectors. The government says this change of rules has been necessary as foreign investment in Australia, including in … Continue reading

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Rental properties: ATO focus on “initial repairs”

The ATO is focusing on claims that investment property owners make for repairs to rental residences that it deems to in fact be “improvements”. The scenario where investment properties have work done on them often happens shortly after the property … Continue reading

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Building a new home? Is it exempt from CGT?

There is a concession in the CGT exemption rules that can allow a taxpayer to treat a property as their “main residence” even though it does not yet have a habitable dwelling. It is a widely recognised fact that capital … Continue reading

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Property transactions: Got an appropriate valuation?

Be aware of how the use of valuations can affect your annual tax bill. Estimates are most commonly used in apportioning expenses between private and business use. More important however is the use of valuations to work out the cost … Continue reading

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Rental property claims that are often misunderstood

The Tax Office has found that there are some landlords who may not be entirely sure about whether they are correctly claiming their rental property deductions. In particular, it has found that many property investors are making simple mistakes that … Continue reading

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The income tax implications of property lease incentives

Lease incentives are commonly used by landlords to entice tenants to enter into a lease. The most common type of lease incentive relates to new tenancies in commercial buildings. These inducements can take many forms, including upfront cash payments, non-cash … Continue reading

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Common errors of new rental property owners

Putting your money into bricks and mortar has been a traditional stalwart of investing for generations of Australians. It continues to be viewed as a solid place to park spare cash and build wealth in the long term. For many … Continue reading

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