Accounting & Tax

Trend sees home Owners becoming Investors

Significant number of home owners are recognising the additional value of renting out their home rather than selling.The most common reason is usually due to the prospect of long term capital growth along with the opportunity to use equity to finance the next home and avoid selling costs.The Australian Taxation Office requires owners of investment properties to report any income they earn. They also allow owners of income producing properties to claim the expenses associated with the property.

RAJS TAX TIPS Oct 2017

Passive Investment Companies will not qualify for the Lower Income Tax offset.
Pay your Super on time.. Government is watching The Employers who does not pay on time.
Your Income must match your lifestyle expenses
You must keep detailed and proper records to justify your Income that is reported.

Treasury Laws Amendment Bill to impact property Investors

Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets. They can claim deductions on plant and equipment items they purchase and directly incur the expense. Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously. Investors should note that these changes are not yet law, as the legislation still needs to be passed through the senate for confirmation

New depreciation rules proposed for Australian residential property investors

2017 Budget, Under the new rules which are yet to be legislated by Parliament, investors will be able to depreciate new plant and equipment assets within a new property and items they add to their property; however subsequent owners who acquire a property after 9th of May 2017 will not be able to claim depreciation on existing plant and equipment assets.

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