Category «Property Investments»

Make Hay While the Sun Shines – Claiming Interest During Construction of a Residential Rental

(Download PDF) The ATO have issued a draft ruling on claiming expenses when you are constructing a rental property. TR 2021/D5 https://www.ato.gov.au/law/view/print?DocID=DTR%2FTR2021D5%2FNAT%2FATO%2F00001&PiT=99991231235958&fbclid=IwAR0IAFNOdKMzqPcho6-FIEI6-cOFGjggwMwWMflgbmx46UbHamRM2ZYDyJ8 From 1st July, 2019 the deduction of expenses relating to vacant land have been severely restricted. Specifically, in regard to the costs associated with vacant land that you are holding to build a …

Hybrids are being Spruiked Again!

(Download PDF) A trust is either discretionary or fixed in the ATO’s eyes anything in between is a charade. A chook on stilts is not a flamingo. The cycle has come full circle, must be enough new players in the property market to make it worth promoting hybrid trusts again. I guess there is a …

Claiming Property Expense When Not Rented

Claiming Property Expense When Not Rented The big question is – “What is Exceptional Damage Beyond Your Reasonable Control?” The answer in the case of the above photo would depend on a DNA test because if your family does the damage, no tax deduction. What a segue! Sounds a lot more interesting than discussing …

Keeping the Nexus Between the Borrowing and the Expenditure

Keeping the Nexus Between the Borrowing and the Expenditure What the borrowed money is used to buy determines whether the interest on the loan is tax deductible. That is the basic rule. The link between the borrowing and the expenditure is called the nexus. This nexus needs to be very clear. You need to be …

Building A Duplex

There are just so many tax traps when building a duplex that you must see a property savvy Accountant before you begin. These issues cover a common wall duplex through to building another house on your land by creating a battle-axe block, to looking at when you create two or more titles with a house …