News

Buying a new home before selling the old one

Buying a new home before selling the old one: The ins and outs

September 3, 2021

Sometimes an individual or couple decide to buy a new home before selling their existing one. In such cases, a concession exists that allows for both houses to be treated as a main residence for up to six months – but only if certain conditions are met. Section 118-140 of the Income Tax Assessment Act…

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Capital works deductions for rental property

August 10, 2021

Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed. The deductions are only available on residential properties built after 17 July 1985. Generally, up to 15 September 1987 the rate is 4% a year (over…

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Have interest rates hit rock bottom

Have rates hit rock bottom? Here’s why you should consider fixing your loan.

May 5, 2021

Some lenders have started to lift fixed home loan rates in recent weeks, signalling that interest rates in the 1% range may be short lived. Australians can now take advantage of some of the lowest lending rates in history. Fixed rates from as low as 1.79% and variable rates from 2.09% are a welcome relief…

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keys in door deadlock

When it comes to real estate and CGT, look at timing

April 2, 2021

When you sell or otherwise dispose of real estate, the time of the event (when you make a capital gain or loss) is usually when one of the following occurs: You enter into the contract (the date on the contract), not when you settle. The fact that a contract is subject to a condition, such…

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CoreLogic Best of the Best 2020

CoreLogic Best of the Best 2020

February 16, 2021

2020 in review and what 2021 might have in store ITC has put together some highlights from the ‘Best of the Best 2020’ report compiled by Core Logic, the leading property information, analytics and services provider worldwide, to help our clients identify opportunities and mitigate risk in the NSW market in the new COVID era.…

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Claiming interest expenses for rental properties

Claiming interest expenses for rental properties

December 2, 2020

Interest is a common deduction claimed by taxpayers. Generally, interest is seen as being inherently deductible where it is incurred in gaining or producing assessable income. An established factor from court cases is that the deductibility of interest depends on the purpose of and use of borrowing the principal. Interest expenses will not be deductible…

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The investment option that can hide unexpected GST

The investment option that can hide unexpected GST

November 6, 2020

New residential property is a popular investment for many, and can be especially so for self-managed superannuation funds, however the ATO is concerned that not every investor in residential property is fully aware that it is an option that may bring with it unexpected GST obligations. The ATO says that from 1 July 2018, most…

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Rental property Tax approach adjusts for COVID 19

Rental property: Tax approach adjusts for COVID-19

August 3, 2020

The COVID-19 pandemic has placed property owners, and tenants in many cases, in unfamiliar territory. Many tenants have been paying reduced rent or ceased paying because their income has been adversely affected. While rental income may be reduced, owners will continue to incur normal expenses on their rental property and will still be able to…

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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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