Real Estate
Deductions for finance on a rental property
Interest can be claimed for the cost of funds borrowed to purchase a rental property and to meet maintenance costs or running expenses while the rental property is being let (or is available to be let) under a commercial arrangement to generate assessable income. In these circumstances the interest paid is deductible even if it…
Read MoreATO waves a red flag on deductions for holiday rentals
Just when many Australians are considering getting away for a mid-winter break, the ATO is reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia. The ATO recently issued a statement saying that last year it identified a large number of mistakes with deductions for rental properties,…
Read MoreThe 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. If you have the available land of course, the above is a solid strategy. However it can cause headaches…
Read MoreReal Estate: Buyers Turned into Tax Collectors
New withholding rules on the sale of property by foreign residents have been introduced. This essentially turns property buyers into potential tax collectors. The government says this change of rules has been necessary as foreign investment in Australia, including in residential real estate, has increased, and is continuing to increase, at an unprecedented rate. The…
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