Main Points Considered A New Zealand Citizen living in Australia, do they qualify for the First Home Owners Grant (FHOG) Also, can they qualify for the First Home Owners Stamp Duty Concessions What if they rent out the spare bedroom to help pay the mortgage? Scenario...
2017 Rental Property Tax Return Checklists Required to Maximise Tax Refunds
Rental Property Tax Returns – Be Prepared:
What you need to bring to your tax return appointment.
If your’re coming in soon to discuss completing your rental property tax returns, please see the following to help ensure we can get the most effective result for you.
What to consider?
Here is a brief checklist of issues to consider prior to us preparing for your rental property tax returns.
Income
- Rental Property Annual Management Summary Report from your real estate agent.
- if you self manage your rental properties, a summary of annual rent received for each property.
- Any unusual income received, such as insurance payout for damages, or a reimbursement from tenants for water, etc.
- Any money added to help fund negative cashflow is not considered income, but rather an indication the property is negatively geared.
- Rental Properties in Foreign Countries, will have different financial years, so income needs to be aligned with the Australian Financial Year.
- Capital Gains – example sale of a rental property – we’ll need details of the purchase and sale contract, and any depreciation claims for claw backs. Also was the rental property previous your principal home will effect any Capital Gains Calculations.
- Subdividing the backyard can have Capital Gains issues to consider also.
Expenses
Rental Property Tax Deductions are many and varied, however to keep it simple, thingk of out goings as either…..
Deductible – Straight Away
Deductible – Number of Years
Non Deductible – Capital in Nature
Property Related issues to consider prior to doing your tax returns
PROPERTY RELATED BLOGS
- Demolishing an old rental property – What are the CGT Implications?
- Capital Gains Tax (CGT) on renting out your principal home?
- Renovations of a Pre 1985 Rental Property – Can CGT be applicable – Yes!
- Property GST – Margin Scheme – Tug of War between sellers & buyers
- Depreciation – Positive or Negative Geared Rental Property?
- Main Residence – 4 Year Rule Exemption of Construction for CGT!
- Do I have to pay tax if I sell the backyard off?
Property Related Tools to help collate information
Use our rental property expense collation forms to help –Rental Schedule – Excel Spreadsheet Depreciation Checklist for new or existing homes pre 2017 federal budget changes to second houses |
Guide for Rental Property Owners & Typical Depreciation Rates for Fixtures & Fittings
New Client or Client Update Form
Self book online a time, date and place to have your tax return prepared.
Be Prepared:
What you need to bring to your tax return appointment.
See 2017 Job Specific Tax Deduction Guides
If your’re coming in soon to discuss your tax return for yourself or your business, try not to turn up empty handed.
Here is a brief general checklist of things to prepare for your tax return appointment. Not all of the following will be relevant for everyone.
Income
- PAYG summaries from employers
- Bank interest received during the financial year
- Distributions from trusts, partnerships, managed funds
- Allowances (car, travel, meals, etc)
- Foreign Income
- Dividends
- Capital Gains – example sale of shares or a rental property
Expenses
- Motor vehicle expenses based on business use – (including a log book if applicable)
- Travel and accommodation expenses – local and overseas
- Work uniforms and clothing expenses
- Courses, training and any professional development completed
- Home office expenses
- Mobile Phone & Internet usage (see tips to claim business use %)
- Tools and equipment
- Computer expenses
- Income Protection expenses
- See newsletter for complete list.
See also our 2017 Individual Tax Return Checklist
MV Log Book Method Worksheet Claim
Australian Homeowner Moving Overseas and Selling Their Principal Place of Residence (PPR) – Avoiding a $295,200 CGT Bill
Principal Place of Residence Exemption Loss if Sold While Overseas Summary of how the Principal Place of Residence (PPR) Exemption is impacted by moving overseas. When Australian homeowners move overseas and become non-residents for tax purposes, selling their...
Investment Property Capital Gains Tax (CGT) Calculation with PPR Transition
Having an investment property prior or posted to it being a principal place of residence has tricky CGT Calculations. Capital Gains Tax (CGT) is an essential consideration for property owners when selling a property used for different purposes over time. This blog...
Understanding Land Tax in Australia
Picture of a vacant block of land to illustrate it may be subject to land tax What is Land Tax? Land tax is a state and territory-imposed tax on the unimproved value of taxable land owned by individuals, companies, and trusts. It is calculated annually based on a...
Tiny homes have excellent rental yields, income streaming and tax minimisation strategies. How do they compare to a Granny Flat?
What are the tax and investment considerations for a Granny Flat above versus a Tiny Home below? Income Tax Return Reporting - Income Streaming Tiny Homes Tiny home ownership does not have to follow the ownership interest of the underlying property ownership. For...
Easier for Victoricans to build Granny Flats from December 2023.
Secondary Dwelling From December 2023 the Victorian Government has passed planning changes to make it easier to build Granny Flats - or "small secondary dwellings", on existing homes. The Victorian Premier Jacinta Allan revealed that planning permits will no longer be...
Property Investors to ensure income and expenses are correct.
The ATO is particularly targeting property investors that are not using the help of a specialist property tax accountant like Umbrella Property Accountant, due to the high error rate being discovered from ATO Audits. The ATO Audits into self-preparers have uncovered...
Residential Rental Caps & Vacancy Taxes will help supply for tenants?
Gold Coast - Example of the Housing Rental Competing Forces Many Apartments are sitting empty most of the year, including an entire beachfront tower. Gold Coast mayor Tom Tate cited an entire high-rise sitting empty in the triple tower Jewel development at Surfers...
Victorian Labour Government Land Tax Hikes to push up Rents
Victoria was the most locked-down state in Australia, if not the world during Covid, resulting in the Victorian Government accruing over $30 Billion in debt to keep the doors closed. Victorian Statement Government wants to raise $8.6 Billion over the next 4 years by...
Joint Venture(JV) Tax Considerations for Property Developers
Joint Venture tax understanding for property developers in Australia Joint Venture Agreement What is a (JV) for Property Development A joint venture (JV) is a cooperative agreement between two or more parties in which all parties contribute their resources (such as...
Labor Targets Housing with ‘Shared Equity Scheme
A federal Labor government would deliver a $329-million help-to-buy scheme, providing 10,000 Australians with a government guarantee of up to 40 per cent on new homes or 30 per cent on existing homes with a two per cent deposit.