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1. Renovations by previous owner
You may be eligible for a deduction for depreciation on the cost of improvement by a previous owner,
provided items are identifiable and itemised in a depreciation schedule.
2. Property and Self-Managed Superannuation Funds
It may be beneficial to review your property acquisition strategy to determine whether there are advantages
to hold property in a SMSF, taking into account the borrowing restrictions of a SMSF and the impact on
your overall buying capacity.
3. Immediate deductions for low cost assets
You may receive a deduction for assets costing $300 or less provided that they are:
used for income producing purposes other than carrying on a business;
they are not part of a set of assets; or
one of a number of identical items that have a combined value greater than $300.
4. Non-commercial rental arrangements
If you rent a property to family or friends at below market rent you may not claim the total rental property
expenses as a deduction.
5. Substantiate your claim
Make sure that you have the receipts to prove your deduction and show why the expense
was incurred to derive assessable income.
6. Prepare a depreciation schedule
You may consider having a depreciation schedule prepared by a qualified quantity surveyor.
The costs of having one prepared is tax deductible and it may add a significant tax deduction for depreciation.
7. Repairs at time of purchase
Expenses for repairs to property are generally deductible provided that they relate to wear and tear or other damage as a result of earning rental income.
The cost of initial repairs at the time of purchase is not deductible.
8. Prepay property expenses
You may be able to prepay property expenses up to 12 months in advance. Prepaid expenses are not automatically deductible.
A review of eligible prepayments should be carried out.
9. Travel and car expenses
If you have travelled to inspect, carry out maintenance or collect rent you may be able to claim the costs of travelling as a tax deduction.
Article Courtesy of Chris Andrews Latrobe Financial (one of Access Loans Panel Lenders) As always, the above tips are a guide only and you should consult an accountant, financial planner
or taxation professional before acting on any of the opportunities presented in this newsletter. We would be happy to introduce you to tried and tested professionals in these fields of expertize.
For further information please contact our office
Ph 1300 755 133
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