ATO investment property tax deductions

ATO Investment Property Tax Deductions FREE Video

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

 

ATO Investment Property Tax Deductions

Your tenants are in and they’re paying you rent and now it’s time to talk about what ATO investment property tax deductions you can claim.

Let’s talk about expenses you can claim.

Well my holiday house is available for rent so there are expenses I can claim immediately and some that I claim over a number of years. There’s also some I can’t claim at all things like;
  • 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?

Immediate deductions like interest council rates and travel costs when I collect the rent and do repairs. There are also three types of expenses that may be claimed over a number of years;
  1. mortgage set up costs
    1. loan establishment fees these are usually claims over five years
    2. you can also claim for wearing out of assets known as depreciation such as
      1. carpets and appliances
    3. 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?

I need to divide up the expenses so in my case with the holiday house I can’t claim a deduction for when I use the house myself.

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

  • interest
  • council rates
  • insurance
  • depreciation
Some things, like electricity are directly related to the usage period so we look at the bill for that period and work out what he can’t claim.
If you only rent out part of your property then you can only claim expenses that relate to that part as a general guide you work it out on a floor area basis and calculate what percentage of the floor area your tenant uses.
If your property is negatively geared that is the rental income is less than the loan interest and other expenses you may be able to claim the loss against your other income such as salaries and wages.
If you’d like to find out more and watch other videos in the series register below and we will let you know when they’re available.

Autonomous Robots Plant, Tend, and Harvest Entire Crop of Barley

Automation is hitting farming again! The 20th century got rid of the horses, will the 21st century see the end of the people?

So a farmer can sit in his unit on the Gold Coast while the ‘bots run things?

That;s gotta be good if we do it right.

 

 

 

This is as autonomous as farming gets, without any humans having to get themselves dirty, or even go outside

Source: Autonomous Robots Plant, Tend, and Harvest Entire Crop of Barley

Man Hates Investment Property Decisions | Being Put In Position Where He Has To Think, Feel, Or Act Sucks – The Onion – America’s Finest News Source

Don’t You End Up Like This Property Investor!

Investment property decisions can be a real nuisance! After all that isn’t what you signed up for. There is no need for you to be bombarded with investment property decisions.

After all didn’t the salesman, vendor and the property manager all get paid? They’re supposed to make your life easier not harder.

At some point isn’t enough just enough?

Area Man hates investment property decisions

Property Investor Hates Investment Property Decisions

Home Truths – Four Corners – YouTube

The Affordable Housing Crisis Investigated By Four Corners

Affordable housing crisis in Australia is reaching biblical proportions. Many are warning of a bursting bubble..

 

Four Corners reports on the white hot issues of housing affordability and negative gearing and the generation left wondering if they will ever own their own home.

“We will start it at 1.1 million dollars ladies and gentlemen.”

A house with a million dollar price tag used to be confined to the super wealthy suburbs in Australia’s biggest cities. Today, properties with that sort of asking price are commonplace, even in the urban fringes, with little infrastructure and lengthy commute times.In Melbourne, the median house price is $700 thousand dollars, around 10 times the average wage. In Sydney, there are suburbs more expensive than Manhattan. It’s why the IMF declared Australia one of the most expensive countries in the world to buy property in. Via youtube.com

 

The Future Of Work And The Social Welfare State’s Survival

Is Your Property Investment Future Proof?

Clickworkers An acquaintance, Lutz, gave me a tour of his co-working space in his Neukölln neighborhood in Berlin, where he and a dozen other digital entrepreneurs rent out little cubicles, share office expenses and network. Lutz and his colleagues are called ‚clickworkers’ because they work over the internet for anybody who hires them for their particular specialty– software development, computer programming, data management, web and graphic design, translation, copy editing and more.

Source: The Future Of Work And The Social Welfare State’s Survival

Investment Property Risks | Our perverse fascination with property – Mortgage Business

Investment Property Risks, There’s No Telling Some People

Investment property risks can be more than adequately managed. So why do so many people forget to manage investment property risks? A little bit of insurance, a long term lease to a good tenant and Bob’s your uncle.

Trouble is with investment property risks property investors get tunnel vision.

Opinion: Our perverse fascination with property – Mortgage Business

The bottom line is this: going into debt carries risks. Period.

Whether you’re racking up debt on a credit card or borrowing to buy a two-bedroom unit in Sydney, there are risks involved. What if you lose your job? What if the price of your property falls? What if you get sick and can’t service the mortgage? What if?

It’s too late to start asking these questions once you’ve taken out a loan. But there are things you can do to alleviate your fears, like taking out mortgage protection insurance and getting advice from someone who isn’t holding the title deeds. Via mortgagebusiness.com.au

The Top 3 Ways To Manage Investment Property Risk

Energy Prices Rising | Future proof your investment property speak to MAcH 10 today

Energy Prices Rising Should Be Every Landlord’s Concern

Energy prices rising reduces the available income your tenants have. Affordable housing design can save you a lot of angst with your tenants. MAcH 10 leased properties are designed protect your tenants from “bill shock“.

energy prices rising

MAcH 10 properties are designed from the ground up to minimize power consumption. This insulates your tenant from energy prices rising. We use renewable energy wherever possible and our properties are “smart”. Using IoT, internet of things technology, appliances communicate with each other turning on and off at the most energy efficient time.

Investment Property Taxation | A Solution To All The Empty Homes?

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.

investment property taxation on empty homes

 

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

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

Property Investment Travel Expenses Don’t Need To Make Investment Property More Expensive For You