ATO to tackle Property Investor’s Rental Deductions
On the 18th August 2014, the ATO released an article highlighting the plan to investigate and analyse rental property deductions.
Within the article, the ATO states they will be reviewing and ensuring each property investor has correctly apportioned property depreciation allowances.
We continually strive to educate all investors the difference between capital improvements, repairs and maintenance items and also clarify which are structural improvements. Our reports have highlighted these costs in the correct categories for the last 24 years.
Our services are carried out by our in-house specialist tax surveyors who are all accredited tax agents (Tax Agents Services Act 2009) for the purposes of preparing depreciation schedules. Our in-house research enables us to keep at the forefront of the ATO requirements. This enables our clients to maximise their position with the surety that they comply with the tax act. Continue reading
Property Tax Allowance Deductions
How to maximise the cash from your investment !
Property Ownership
Why is it that when talking about investments, the discussion is based on a net before tax return, and the issue of after tax return is never given proper consideration? In this article using some basic rules of tax depreciation, we will show a simple example of how deductions, when properly calculated, can improve the net after tax cash return of a property investment.
What if this information is not available from the vendor?
Tax ruling 97/25 basically provides the avenue for the owner to have an assessment done by a suitable qualifed professional quantity surveyor such as Napier & Blakeley.
Example – see Table 1
The simple example below shows how a properly prepared property tax allowance assessment can provide icing on the property investor’s cake. We used a $5m office building with 1800m² net lettable space, rented at $250m² to give a total of $450,000 annual income. We also know that it was built in 1995 and includes a land component of $500,000. Continue reading
