“The biggest failure of public administration since the formation of the Commonwealth of Australia in 1900.” Australian Tax Office insider. “The result of having the wrong system where taxes are too high and a labour market which is over-regulated.” Liberal Party insider. We are talking about the broad, state-sanctioned, backdoor deregulation of Australia’s labour market, which has…
Straight From The Australian Taxation Office
ATO investment property tax deductions are pretty straight forward. This video explains the basics.
ATO Investment Property Tax Deductions
Let’s talk about expenses you can claim.
- the actual cost of buying and selling the property
- initial repairs I had to make
- those costs of use when working out any profit known as capital gain when I sell the property.
- If I own the property equally with my wife I could only claim half the expenses and I would have to declare half the income.
We’ve talked about what you can’t claim what can you claim?
- mortgage set up costs
- loan establishment fees these are usually claims over five years
- you can also claim for wearing out of assets known as depreciation such as
- carpets and appliances
- building costs these are generally claimed at two-and-a-half percent per year
What happens if you only rent your property out for some of the year?
What if you rent the property out at a reduced rate?
Say to two family or friends in that case what I can claim is usually limited to the amount of rent that I received.
There are specific exemptions for properties managed by Registered Housing Providers click below to find out about those “extra savings”
It sounds complicated but its not really. Let’s look at what happens when Michael stays in his house for one month. This is for his personal use so he can’t claim deductions for this period.
Here’s how we’d work it out. For all the expenses that occur evenly he could simply divide them by 12 to get a monthly rate that includes
- council rates
Its Time To Get Angry, Very Angry!!!
This ring-a-ring-a-rosy has all the hallmarks of a transaction designed to create almost a billion dollars in losses which can be used for tax purposes in Australia. The Australian company has “invested” almost a billion dollars into two companies which were suddenly liquidated — with no value left for shareholders. Nothing is heard of them since.
It brings to mind the infamous Bottom of the Harbour tax schemes of the 1980s where the financial engineers – facilitated by the top end of the accounting community – made investments in companies, stripped those companies of their assets and left nothing for the taxman.
Investment Property Taxation Can It Solve The Housing Crisis?
Investment property taxation is being suggested as a way of prompting owners to let their properties. The lights are out on a million Australian homes every night.
Taxing empty homes: a step towards affordable housing, but much more can be done
Across Australia on census night, 11.2% of housing was recorded as unoccupied – a total of 1,089,165 dwellings. With housing affordability stress also intensifying, the moment for a push on empty property taxes looks to have arrived. The 2016 Census showed empty property numbers up by 19% in Melbourne and 15% in Sydney over the past five years alone. Taxing empty homes: a step towards affordable housing, but much more can be done
Property Investment Travel Expenses | No More Tax Deductions For Inspecting Your Investment Property
Tax Deductions Have Changed Significantly In The Budget
Property investment travel expenses are out! Whether for purposes of inspection or maintenance you can no longer claim property investment travel expenses as a deduction. This makes your property manager even more important.
Travel expenses for investors no longer deductible – Mortgage Business
Individual investors with residential investment properties will no longer be able to deduct travel expenses, including travel costs associated with inspecting and maintaining properties, the government has confirmed.
However, Ms O’Dwyer emphasises that the change in law will not prevent investors from claiming a deduction for the expense of engaging third parties, such as real estate agents, to provide property management services for investment properties. mortgagebusiness.com.au