Tax Depreciation
Why buying brand new is now the key to maximising your tax deductions
People often ask me questions like “I should buy a new investment property because it’s better for tax right?” The answer is yes and at the same time, no. Buying a brand-new property because of the available deductions is not a sophisticated strategy. Accountants tell me the same thing, people say they need an investment…
Read More5 things to consider when buying an off the plan investment property
Buying an investment property ‘off the plan’ has many benefits. Government incentives, tax depreciation, long settlement terms and the satisfaction of owning a brand-new property makes buying into a new development attractive to many property investors. Here are five things you should consider if you’re looking at an off-the-plan investment property: Do your…
Read MoreOccupying your investment – The accidental investment property
We’ve often wondered how many investors convert their primary place of residence into an investment. We’ve seen a lot of first home owners buy a property for stamp duty concessions or first home owner bonuses and live in their property for 6-12 months before promptly converting it to a rental. However, anecdotally most of the…
Read MoreDepreciation 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 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 MoreSplit depreciation reports are saving investment property co-owners thousands
Skyrocketing property prices are driving a sharp increase in people pooling their resources to get onto the property ladder. By combining assets to achieve better buying power and a bigger deposit, siblings, friends and business partners are making property ownership a realistic goal. If you choose to buy an investment property as a co-owner you…
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 MoreChanges to Depreciation Deductions for Plant & Equipment Items
The budget is only two hours old and I’m back in the office trying to come to terms with some pretty fundamental changes. To cut a long story short, from now on, property investors will only be able to claim depreciation deductions on plant and equipment items if they either; a) purchased the asset directly…
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