Investment Property
Depreciation deductions, an investment property and capital gains tax
Claiming tax depreciation deductions against an investment property can put thousands of dollars back in your pocket each year. But will claiming deductions now mean paying more capital gains tax when you sell? What is capital gains tax (CGT)? CGT is the tax payable on the “capital gain” made while you hold an investment…
Read MoreHow do I backdate my investment property depreciation?
Investment property tax depreciation deductions can have a huge impact on the cash flow and profitability of your property investment. Depreciation equates to ‘lost value’ due to the wear and tear of capital works (structural building elements such as concrete and roof tiles) and to plant & equipment (fixtures and fittings such as carpets, ceiling…
Read MoreDraft Legislation for Depreciation Changes Issued by Treasury
On Friday the 14th of July, the treasury finally issued their draft legislation relating to the changes to depreciation for plant and equipment items. Personally, the most positive thing about the draft is that it’s silenced the fear-mongering commentators saying that depreciation on plant and equipment would be stripped from new properties. This was never…
Read MoreIs a commercial property investment something you should consider?
When the Federal Government announced 2017-18 Budget measures to limit tax depreciation claims against second-hand residential investment properties, market experts predicted that many investors would turn their attention to commercial property investment. Is a commercial property investment something you should consider? There are plenty of reasons to have a look: Longer term tenants A typical…
Read MoreHow will changes to investment property depreciation affect you?
Investment property tax deductions hit the headlines when the 2017-18 Federal Budget was handed down on 9 May 2017. As the second biggest tax deduction after interest, depreciation deductions against investment properties save investors thousands of dollars and can make or break the profitability of a property investment. By claiming a tax deduction for the…
Read More5 reasons to consider investing in commercial property
Investing in commercial property can seem daunting to the uninitiated. Here are five reasons you should consider taking the plunge: Commercial properties can offer higher depreciation tax deductions than residential properties While residential property investors can claim 2.5% annually for capital works, commercial properties can attract up to 4% of historical construction costs, depending…
Read MorePlant & Equipment Depreciation Changes – 2017 Budget Measures
The announced budget changes by the treasurer Scott Morrison, effectively take a sledgehammer to residential depreciation legislation that hasn’t really changed since 2006. The Reserve Bank only has a blunt instrument to work with, in changing the cash rate to curb/stimulate inflation, but fiscal policy can be far more nuanced. The Government opted against a…
Read MoreAnalysis of the Budget Changes to Tax Depreciation on Plant and Equipment
UPDATED 11/5/2017 If you’re not already aware, last night’s budget announced some major changes to tax depreciation that will have a huge impact on quantity surveyors preparing depreciation schedules and residential property investors. I’ve been fielding calls and emails from accountants, investors and quantity surveying firm directors through the evening. There are two main ‘buckets’…
Read MoreMaximise depreciation tax deductions when renovating an investment property
Are you planning to renovate your investment property? A brand new kitchen, new carpets or a quick lick of paint – there are plenty of ways a well-considered renovation can boost the capital value of your property and attract higher rental income. A renovation can also provide a tax-time bonus if you plan ahead and…
Read More3 strategic factors that influence the TDS for your investment property
Every property investor should be claiming depreciation deductions via a tax depreciation schedule. An investment property tax depreciation schedule is a summary of the tax deductions you can claim for the depreciation of your investment property’s structural elements (such as bricks and concrete) and “plant and equipment” components (such as blinds, air conditioning and carpets).…
Read More