Posts Tagged ‘tax deductions’
“It’s not worthwhile having a depreciation schedule” – How costly unqualified advice can be
Recently we were following up on a quote in Newcastle, NSW for a house that had been split into three small units. The owner came back to us with the following: “Thank you for your email. After sending this email, I spoke to the managing real estate who advised me that the house was too…
Read MoreNegative Gearing and the Mum and Dad Investors
Much has been posited about the typical Australian property investor, especially their salary. According to the ATO, 67% of investors claiming rental interest deductions take home under $80,000 per year. At least as far back as 2014, the data has been pulled apart and commentators have asserted that the data is flawed. Their argument is…
Read MoreAverage Depreciation for Port Macquarie Home
Last month we looked at some depreciation deductions for a typical unit in Sydney. We chose a rather average unit and this month we’ll be doing the same with a house in Bonny Hills, which is near Port Macquarie. It’s easy to pick an eight million dollar unit and talk about how fantastic the deductions…
Read MoreWhat are Scrapping Schedules?
Authors Note: Scrapping schedules have been impacted by legislation changes and in most cases will not suit your scenario. See more information here – Scrapping Schedules – Why they’re a thing of the past. The term ‘scrapping schedule’ is thrown about a lot these days, and to be honest, it’s a term that is more…
Read MoreWhat will a new kitchen do for you?
What will a new kitchen do for you?Updating a kitchen can be a fantastic way to increase both your rental yield and the capital value of your investment property. We’re often asked what a new kitchen will do for depreciation deductions. Ignoring any scrapping component discussed in the adjacent article, let’s take a look at…
Read MorePrestige Residential Units & Depreciation Deductions – How do they stack up?
We’ve prepared a number of depreciation schedules on prestige residential units recently and thought to offer some insight into some of the major depreciable components and overall deductions. One particular prestige development was “The Residence” on Hyde Park. The development comprises 87 luxury apartments over 23 levels with unparalleled views of Sydney’s city skyline and…
Read MoreThe pitfalls of specialisation; Depreciation deductions maximised with estimating department
We live in a world of specialists, and for the most part, it’s a good thing. We use buyers’ agents to find us the best real estate, mortgage brokers to find us the best loan and comparison sites just to help us compare different companies. Why? Well the majority of the time it’s because we…
Read More4 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 More5 Things you need to know about depreciation this tax season
It’s that time of year again when accountant’s offices are a hive of activity with shoeboxes of receipts being dumped on desks and excel sheets being deciphered and dutifully turned into tax deductions. For property investors, the tax season should be a time where a little bit of knowledge and planning results in some significant…
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…
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