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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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Why now is the time to consider refinancing your home loan.

July 19, 2018

While interest rates have been at historic lows, 966,000 Australian households are estimated to be in mortgage stress and default (Digital Finance Analytics – DFA). DFA Principal Martin North says ‘the expectation is that in the next few months stress will continue to rise as mortgage rates rise’. In recent weeks, we’ve seen banks starting…

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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…

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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,…

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