The Priority Report BMT Tax Depreciation
#28
2022 Smoke Alarm Countdown
As a building gets older and items within it wear out, they depreciate in value. The Australian Tax Office (ATO) allows owners of income producing property to claim a tax deduction called depreciation, on a buildings structure and plant and equipment assets contained within it. Claiming depreciation is a significant taxation benefit, and one which many investment property owners are unaware of. Depreciation is a non-cash deduction— you do not need to spend any money to claim it. Case study—3 bed built in 1970 purchased for $500,000 A house built in 1970 purchased for $500,000 one year ago. Annual after tax outlay amounted to $7,093. BMT tax depreciation schedule created a deduction of $4,873 in the first year.
Deadline for QLD Smoke Alarm Compliance. It’s closer than you think!!
Potential New Policy for First Home Owners
The ATO has warned rental property owners to make sure that their claims are correct this tax time, as it Intends to prioritise deductions and double its rental audits.
Prime Minister, Scott Morrison surprised Australians with a new policy during his speech at the Coalition’s campaign launch. Admitting it was still too difficult for first home buyers to break into the property market. The new policy he announced is similar to the one the New Zealand government has been running for years. It will allow first home buyers below a certain income threshold to secure a home loan with as little as 5%. These thresholds being $125,000 for singles & $200,000 for couples. Although nothing is confirmed at this stage, this could be a great opportunity for first home buyers to break into the market.
Maintenance is Key
Every rental property in Queensland must meet the new smoke alarm rules by 31st December 2021. For more information about what will make your investment property compliant contact our office on 07 3164 7000.
ATO to double its rental audits
Assistant commissioner Gavin Siebert said that, in the 2017-18 financial year, more than 2.2M Australians claimed over $47 billion in deductions. ‘A random of sample returns with rental deductions found that 9 out of 10 contained an error. We are concerned about the extent of non-compliance in this area and will be looking very closely at claims this year” he said. ‘We expect to more than double the number of in-depth audits we conduct this year to 4,500.” He said that last year the ATO audited over 1,500 taxpayers with rental claims and applied penalties totalling $1.3M www.realestatebusiness.com.au
One of the major aspects in selling homes is the condition of the property, and the condition of the interior and exterior of the home itself. Maintaining your property is always the first part of increasing the value. By taking the time to perform regular maintenance on your property, you will end up with a much higher result when it comes to selling than a property that has not had regular maintenance done. p: 073164 7000
e: admin@professionalspriority.com.au
Page 20 - June 2019, The Hills Echo
Professionals Priority Ferny Hills @professionals_priority
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