If you have invested in or are considering investing in the property market, you might want to know about these two major changes that have recently been made to rental property deductions:
The first change is in relation to travel associated with rental properties
From July 2017, taxpayers who own rental properties are no longer able to claim tax deductions for costs incurred in travelling to inspect or maintain their rental property.
This includes air fares and accommodation, car expenses, travel to see real estate agents and to hardware stores to purchase materials for repairs.
The second change effects depreciation claims on items previously used in residential rental properties
Fixtures and fittings purchased after 9 May 2017 are not valid for depreciation after July 1st 2017.
This restriction only applies to fixtures and fittings that were previously used.
If you purchase or build a new property for the purposes of residential rental investment, then the fixtures and fittings can still be depreciated because they have not been previously used.
Also note that the building allowance can still be claimed. So, it’s still worth obtaining a quantity surveyors report if a building allowance can be claimed on a property, or if the property is new residential premises.
There are 2 main exceptions to these new rules:
- Companies that own and rent out residential properties;
- Residential rental businesses such as motels, aged care facilities and student accommodation businesses.
- If you have invested in or are considering investing in the property market, you might want to know about two major changes recently made to rental property deductions: Travel associated with rental properties For the 2017/2018 and subsequent financial years, taxpayers who own rental properties will no longer be able…
- Buying an investment property is always an exciting time, but it also requires you to make some really big decisions. It’s not uncommon for some investors to feel overwhelmed and confused by all the (sometimes conflicting) information out there. One of the most problematic debates is whether you should buy…