Category «Rental Property – Deductions Other Than Interest»

Too much improvement and no repair

Question Are these balcony works a repair or improvement? Hi Julia, I recently had to fix damage on the balcony of my investment property. The total cost was $23k. Normally rent is around $42k but this financial year it was $34k due to some vacancy. I had the property built in 2008 and it has …

Insurance Claim on a Pre CGT Property

Question This issue relates to the repair of damage caused by a flood on 27/2/22 to a rental duplex that is strata titled – Unit 1 & Unit 2 – and the timing and amount of income and deductions that are related. Amounts roughly rounded for simplicity which don’t affect concepts. The building was built …

What Can be Claimed When Getting a Property Ready to Rent

Question My question relates to initial repairs and how the ATO classifies an inherited property. Our ancestral home in Qld was bequeathed to me in May 2021, and the title was transferred the following November. I was initially undecided as to whether I should sell the property or lease it out, as I currently live …

Turfing After A Drought

Question In the recent drought, the lawn has completely dried out and died off. Now that the rain has arrived, everything has started growing again, however there is no longer any trace of lawn. The weeds have completely taken over. To maintain the property in a tenantable state, and to minimise vacancies, I am considering …

Who Gets To Depreciate Farm Improvements?

Question We purchased a 40 ha (100 acre) property in early 2018 for about $920 K, the offer of acceptance included a GST Annexture where the choice “Sale of Farming Business as a Going Concern”, was signed by all parties such that the transaction was GST free. The property was bought in our own names, …

Can I claim deductions for scrapping our investment property and are we liable for GST

Question An old house was purchased between brother and my husband and I as tenants in common with 50/40/10% share respectively on 6 July 2013 (settlement date). We intend to knock down the existing house and build a duplex and split the title. My brother will live in one duplex and will retain 100% ownership …

Is payment to spouse tax deductible?

Question My wife and I contribute about equally to each other’s income earning potential and what we would like is to have that reflected in our tax returns. Is a spouse allowed to pay the other for their contributions, and would this type of payment be tax deductible?By the way thank you for your two …

Repairs or improvements?

Question Hi Julia,I have recently purchased an investment property. I am having a think about how much money i can spend on the property in terms of repairs and improvements. I need to have a better understanding of what i am entitled to claim on tax in order to budget effectively. I have had a …

ATO Approved Tax Entitlements

Question I have had a call from Members Alliance saying that there are ATO approved tax entitlements for people who are under 60 years of age, who had bought or built investment properties, whose income is more then $72,000 per year. And who have done this to help them be self funded in their retirement. …

Pre-payment of rates, strata and electricity deductable?

Question I have two investment properties. Because I am in the highest tax bracket this year but in the lowest next year I want to pre-pay as much expenses as possible. I know it’s possible with the interest for the loans.What about estimating strata, council rates and electricity for the next year based on the …