Owners of income producing properties are eligible to claim tax deductions for a number of expenses involved in holding a property. Most investors are aware of some of the deductions they are entitled to; for example they know they can claim their Property Manager’s fees, council rates and any repairs and maintenance costs. However, all too often investors are unaware of property depreciation and as such they frequently miss out on the valuable returns these deductions can provide them with when they complete their annual income tax returns. To help investors maximise the deductions they can claim from an investment property in the lead up to tax time, let’s take a look at some key points to
The end of financial year is almost here, and property investors should seek expert advice on the deductions available to them. The end of financial year is almost here and with it, property investors will be readying themselves to visit their accountant to complete their annual income tax return. Every year the Australian Taxation Office (ATO) encourages property investors to be vigilant with their claims. It is therefore important for investors to seek expert advice on the deductions available. A large percentage of investors fail to maximise depreciation deductions or make mistakes by not claiming the deductions for capital works or plant and equipment items correctly. To ensure deduction
Rumours of the death of the Australian housing market are widely exaggerated,” says Craig James, Chief Economist, CommSec. Capital city home prices rose by 1.6% in the month of May to be an impressive 10.0% higher for the year, according to The CoreLogic RP Data Home Value Index. Home prices rose in seven of the eight capital cities during the month. Prices only fell in Perth, which saw a 2.7% fall. “After sluggish growth in home prices in February and March, prices posted the best back-to-back gains in 10 months over April and May,” said James. But James said he still expects prices to soften in the year ahead.“ More homes are being built in Australia than ever before and building approvals
