Posts Tagged ‘division 40’
4 Things you need to know about depreciation this tax season
It’s that time of year again where television advertisements start battering us with acronyms like ‘EOFYS’ and shoe boxes of receipts are clutched in trembling hands gripped by the terror of a looming tax return. Whilst fear and dread might be the default emotions for many at this time of year, for property investors it’s…
Read MoreATO Tax Depreciation Effective Lives – Depreciation Rates for 2013/2014 under Tax Ruling 2013/2014
*Note – These effective lives are now covered by TR 2019/5. The best up to date list is here https://www.mcgqs.com.au/ato-effective-lives-2019-2020-depreciation-rates.php We’re frequently fielding questions about the specific effective lives for residential property, so we’ve decided to post the current effective lives here. These effective lives are current at the time of posting, and come from…
Read MoreThe average house that achieved over $3,000 worth of depreciation deductions in 59 days
At MCG we occasionally see some astonishing tax depreciation deductions, like the penthouse in Cremorne Point which returned over $170,000 in its first full year of claim, but even an average house can return amazing, yet every-day deductions. Consider a property in Goulburn built in May 2012 and purchased brand new for $315,000 (the above picture is…
Read MoreNew effective life legislation from the ATO – TR 2012/2 in effect from 1 July 2012
On the 27th of June 2012, the ATO withdrew the taxation ruling TR 2011/2. This outlined the effective life of all qualifying plant and equipment depreciating assets. The new and excitingly named TR 2012/2 ruling is in effect from the 1st of July 2012 and includes some changes to existing depreciating assets and the addition of some new…
Read MoreDisplay homes as property investments – The pros and cons
A display home can be a very attractive option when it comes to property investment. They’re normally built to a high standard, impeccably maintained and have guaranteed rent for a set period. Coupled with this there’s often a high yield and always fantastic tax depreciation deductions. Purchasing a display home is a little different from…
Read MoreTax Depreciation Rates (ATO) – 2012 Rates for your residential investment property
In previous posts we’ve looked at how effective lives are calculated, how depreciation rates are calculated and the difference between the diminishing value and prime cost methods. As we often get questions about the specific effective lives for residential property, we’ve decided to post the current effective lives here. These effective lives are current at…
Read MoreATO Tax Depreciation Methods – Diminishing Value and Prime Cost
The ATO allows two very different methods of calculating property tax depreciation deductions, the Diminishing Value Method and the Prime Cost Method. Most investors choose the Diminishing Value Method as it will return the greatest amount of deductions over the first few years of ownership. However it’s worth discussing with your accountant, as maximising your…
Read MoreNew Property vs Old Property – A comparison of tax depreciation deductions for the property investor
There are many considerations when purchasing an investment property. Property investors will need to consider their personal strategy, capital growth potential, rental yield, area demographics, rental demand, maintenance costs and much more. One important piece of the puzzle is property tax depreciation. It isn’t normally one of the first considerations of the property investor however…
Read More