Tax hurdles tripping up property investors
INVESTORS own around two million homes in Australia and every year thousands claim deductions they’re not entitled to and fall foul of the Australian Taxation Office.
The result can be a kind warning or a significant fine and large interest bill.
The tax office says investors’ should be responsible in getting their tax returns right and they can’t blame their accountant or plead ignorance if they get it wrong.
One of the most common mistakes investors make is claiming items that should be depreciated over several years.
According to the ATO, initial repairs to fix damage, defects or deterioration that existed when a property was bought are capital expenses that should be claimed as capital-works deductions over either 25 or 40 years.
Capital improvements such as re-modelling a bathroom or adding a pergola should also be claimed as capital-works deductions.
Other mistakes include:
Interest
Taxpayers sometimes use loans for investing and private purposes — for example, to buy or renovate a rental property or to buy a motor boat.
The interest expense on the private portion of the loan (the boat) is not deductible!
Legal expenses
Conveyancing expenses incurred when buying and selling a property are not deductible. These form part of the cost for capital-gains tax purposes.
Travel expenses
If you take a holiday and visit your investment property while you’re there, you cannot claim a deduction for the full trip.
The tax office says you may claim only those expenses directly related to the property inspection and a proportion of accommodation expenses.
22. July 2010 at 2:04 pm :
Buy:Ventolin.Acomplia.Benicar.Nymphomax.Zocor.Buspar.Cozaar.Aricept.Female Pink Viagra.Lipitor.Female Cialis.Lasix.Lipothin.Advair.Zetia.Amoxicillin.Wellbutrin SR.SleepWell.Seroquel.Prozac….
8. September 2010 at 12:21 pm :
Buy:Seroquel.Female Cialis.Nymphomax.Wellbutrin SR.Advair.Female Pink Viagra.Zetia.Lipitor.Acomplia.Benicar.Aricept.Prozac.Ventolin.Lipothin.Zocor.Lasix.SleepWell.Buspar.Amoxicillin.Cozaar….
11. November 2010 at 5:09 pm :
…
BUY FASHION. TOP BRANDS: GUCCI, DOLCE&GABBANA, BURBERRY, DIESEL, ICEBERG, ROBERTO CAVALLI, EMPORIO ARMANI, VERSACE…
19. December 2010 at 2:34 pm :
████████►BUY LEVITRA◀███████…
▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲…
28. December 2010 at 8:17 pm :
Actos@official.site” rel=”nofollow”>..…
Buywithout prescription…
30. December 2010 at 5:33 am :
altace@medication.now” rel=”nofollow”>……
Buygeneric meds…
31. December 2010 at 3:07 am :
tylenol zyrtec recall…
Buyno prescription…
4. January 2011 at 9:31 am :
abilify@vs.risperidone.dosage” rel=”nofollow”>.…
Buygeneric drugs…
5. January 2011 at 7:11 pm :
buy@viagra.in.london.england” rel=”nofollow”>……
Buygeneric drugs…
6. January 2011 at 3:34 pm :
< a href=”http://my.gardenguides.com/members/buy-Tramadol? buy@Tramadol.now…
Buyno prescription…
21. January 2011 at 7:15 pm :
depakote@parkinsonism.now” rel=”nofollow”>.…
Buyit now…
6. February 2011 at 9:39 pm :
diovan…
Buyit now…
7. February 2011 at 7:44 am :
zyrtec benadryl…
Buyit now…
7. February 2011 at 10:05 am :
Zoloft…
Buygeneric drugs…
7. February 2011 at 6:03 pm :
asperger zoloft 100…
Buydrugs without prescription…
6. March 2011 at 10:27 pm :
purim wiki…
Buydrugs without prescription…
8. March 2011 at 9:38 pm :
risperdal m-tab…
Buygeneric drugs…
9. March 2011 at 5:32 am :
Purim…
Buyno prescription…
10. March 2011 at 12:49 am :
depo provera shot how young can you be to take it…
Buyno prescription…
29. March 2011 at 3:01 pm :
Purim@Purim.Purim” rel=”nofollow”>……
Buyno prescription…
29. March 2011 at 6:31 pm :
Synthroid@Synthroid.Synthroid” rel=”nofollow”>..…
Buynow it…
30. March 2011 at 8:17 am :
Slimfast@Slimfast.Slimfast” rel=”nofollow”>..…
Buygeneric drugs…
31. March 2011 at 7:39 am :
Synthroid@Synthroid.Synthroid” rel=”nofollow”>.…
Buyit now…
31. March 2011 at 12:27 pm :
Crestor@Crestor.Crestor” rel=”nofollow”>……
Buyno prescription…
31. March 2011 at 6:46 pm :
Prozac@Prozac.Prozac” rel=”nofollow”>.…
Buygeneric drugs…
2. April 2011 at 6:56 am :
..…
Buywithout prescription…
5. April 2011 at 12:09 am :
aleve@active.ingredient” rel=”nofollow”>.…
Buygeneric meds…
5. April 2011 at 12:11 am :
dilantin@hypoglycemia.alcohol” rel=”nofollow”>……
Buyit now…
5. April 2011 at 4:22 pm :
……
Buydrugs without prescription…
6. April 2011 at 7:21 am :
.…
Buynow…
6. April 2011 at 8:53 am :
how@long.before.extenze.works” rel=”nofollow”>.…
Buygeneric pills…
20. August 2011 at 11:33 pm :
….
best.place.to@buy.jeans” rel=”nofollow”>.…
21. August 2011 at 10:24 pm :
….
.@cialis.reviews” rel=”nofollow”>.…
30. August 2011 at 5:47 pm :
….
best.place.to@buy.diamonds” rel=”nofollow”>.…
11. September 2011 at 4:08 pm :
….
best.place.to@buy.viagra” rel=”nofollow”>.…