property investment

Asbestos removal, even testing, may be deductible

There is a taxation ruling (in draft form at the moment) that spells out when a rental or commercial property owner may be able to claim a deduction relating to expenditure incurred by activities undertaken to deal with pollution issues and other environmental protection purposes. The ruling, TR 2019/D3, does not define “pollution”, which therefore

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Property development and tax

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO are many and varied, but can include topics such as whether an agreement to develop and sell land is a “mere realisation” or a disposal either in

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Capital works deductions for rental property

Rental property investors can claim capital works deductions for construction costs for a rental property, however there are limits imposed in relation to the dates such works were completed. The deductions are only available on residential properties if these were built after 17 July 1985. Generally, up to 15 September 1987 the rate is 4%

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The CGT implications of subdividing and building on the family property

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. CGT implications of subdividing and building on the family property. If a taxpayer has the available land of course,

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Your landlord clients need to be prepared to lose this deduction

New legislation recently tabled in Canberra puts a measure first announced with the last Federal Budget closer to reality. Your landlord clients need to be prepared to lose this deduction The Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 (you can read the details here) solidifies the government’s intention to deny all travel deductions relating

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Why the negative gearing issue is not going away anytime soon

Negative gearing is not isolated to property investment, although this is where many if not most Australian taxpayers will associate the mechanism. The fact is that the measure exists within the fundamentals of Australia’s tax system anyway — a deductibility of interest on borrowings made to undertake an investment.  It is nothing more than a

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Common errors of new rental property owners

Putting your money into bricks and mortar has been a traditional stalwart of investing for generations of Australians, and continues to be viewed as a solid place to park spare cash and build wealth in the long term. For many years a lot of us seem to have heeded the quote attributed to Mark Twain:

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Property investment options: SMSFs versus discretionary trusts

Astute investors assess many options in choosing a structure for investment, with tax planning being one consideration among many. There are tax advantages in relation to using a discretionary family trust or a self-managed superannuation fund (SMSF). However, one question that needs to be answered by investors is: “When do you wish to realise any

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Negative gearing: A polarising issue that won’t go away

Australian governments across the political hues see no need to touch negative gearing.  It is a mechanism that exists within the fundamentals of Australia’s tax system anyway — a deductibility of interest on borrowings made to undertake an investment.  It is nothing more than a specific case of the general principle that the expenses incurred

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