News

Rental property owners lose some deductions

February 2, 2018

Legislation that came into law in the last half of 2017 makes a reality measures first announced with the 2017 Federal Budget. The “housing tax integrity” bill solidifies the government’s intention to deny all travel deductions relating to inspecting, maintaining, or collecting rent for a residential investment property. As well, second-hand plant and equipment that…

Read more
ATO waves a red flag on deductions for holiday rentals

ATO waves a red flag on deductions for holiday rentals

July 4, 2017

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 that last year it identified a large number of mistakes with deductions for rental properties,…

Read more
The CGT implications of subdividing and building on the family property

The CGT implications of subdividing and building on the family property

May 2, 2017

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 available land of course, the above is a solid strategy. However it can cause headaches…

Read more
Renting out part or all of your home

Renting out part or all of your home

August 1, 2016

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 associated expenses. However, be warned. If you rent out part of your home, such as…

Read more
Real estate: Buyers turned into tax collectors

Real estate: Buyers turned into tax collectors

July 3, 2016

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 residential real estate, has increased, and is continuing to increase, at an unprecedented rate. The…

Read more

Rental properties: ATO focus on “initial repairs”

March 8, 2016

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 is purchased, and has led to the term “initial repair” being commonly used when discussing…

Read more
Building a new home? Is it exempt from CGT?

Building a new home? Is it exempt from CGT?

December 4, 2015

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 gains tax (CGT) exemption applies to a taxpayer’s principal or main residential property. And one…

Read more
Property transactions: Got an appropriate valuation?

Property transactions: Got an appropriate valuation?

November 4, 2015

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 of transactions that are not at arm’s-length or when no actual cash changes hands. A…

Read more
Rental property claims that are often misunderstood

Rental property claims that are often misunderstood

October 12, 2015

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 could be avoided with a little guidance. The Tax Office has identified some of the…

Read more

The income tax implications of property lease incentives

April 8, 2015

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 items such as motor vehicles or boats, expensive paintings or holiday packages. Also on offer…

Read more