ATO is contacting Residential Investors – BEWARE!
The ATO has issued an early warning again this year. As tax time is nearing to an end for EFOY16 (yes that was quick), the ATO is reminding all residential property and holiday home investors to get in order your deductions as they intend to review this sector for discrepancies. Refer to the following link: : https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Deductions-for-rental-property-owners/?tpissue-10-2016
In particular, all your expenditure and capital allowances must be recorded, apportioned correctly and accurately in accordance with the current legislation. If you have made some profit in selling your investment property this financial year, the transaction may have resulted in a capital tax gains (CGT) event, and if not treated properly could result in a larger tax payment due than originally thought. You must also have sufficient evidence your property was income producing thus providing you a trigger to claim any deductions. Refer to the following link for a detailed explanation of what you may require for EOFYS 2016 on your residential property: https://www.ato.gov.au/General/Property/Residential-rental-properties/ Continue reading
Negative Gearing – Property Depreciation get it while you can!
In recent years there has been much debate about the pros and cons of negative gearing in the property industry and what impact removing it from the investment horizon would make.
We get a call every day from clients about this and clearly it is an issue that will affect the investment activity of some investors in the property market.
Whilst recent announcements from politicians on both sides of politics have highlighted that negative gearing is in the cross hairs, it remains to be seen what might actually happen going forward.
We can however be sure (at this stage) that there are no moves afoot to make any changes to claiming property tax depreciation deductions on your investment property, so you can still enjoy these substantial benefits that will significantly enhance your investment cash flow and after tax return going forward. Continue reading
