Search Results For: tax depreciation - Page 1

As a tenant of a commercial property in Australia, you might be surprised to learn that you can claim tax depreciation on certain items. This can significantly reduce your taxable income and put more savings in your pocket.   Let's explore what tenants are eligible to claim and how it can benefit their business.  Requirements for… ... continue reading

As an owner-occupier of a commercial property in Australia, you can claim tax depreciation on various aspects of your property.  The great news is commercial investors are unaffected by the legislative changes made on May 9, 2017. Any second-hand plant and equipment can no longer be claimed on residential properties if it was rented after… ... continue reading

As you own and utilise assets in your business, they will naturally experience ‘wear and tear’. Depreciation is an invaluable financial tool that recognises this decline on your balance sheet, dispersing a depreciating asset’s cost over its anticipated lifespan.   Depreciation assists modern businesses in recognising expenses and related income, creating a more precise representation of… ... continue reading

Owning your own home has long been considered part of achieving the "Australian Dream." The idea of buying your first house to settle down in and live in is ingrained in Australian culture and seen as a major life milestone.  However, with skyrocketing property prices in recent years, more first home buyers are facing barriers… ... continue reading

Debt recycling is a strategic wealth-building approach that converts non-deductible home loan debt into tax-deductible investment debt. This financial strategy leverages home equity to create investment opportunities while maximising tax benefits.   Property owners can generate passive investment income streams by recycling debt and accelerating wealth creation through a process that might otherwise take years of… ... continue reading

Knowing about your investment property tax deductions will undoubtedly boost your tax return and overall rental income. However, many investors miss out on expense claims because they aren’t equipped with the knowledge presented by the Australian Tax Office (ATO). Seeing the full potential of all the tax breaks available to you could be the difference… ... continue reading

A fit-out refers to the process of fitting out or outfitting the interior of a commercial or retail space to make it suitable for occupation and business operations. Whether you're opening a new retail store, restaurant, office, or medical clinic, fit-outs are crucial to properly establishing your brand, improving functionality and workflow, and attracting customers… ... continue reading

As you embark on the journey of investing in property, you'll soon realise you can’t do it alone, and the value of property experts is indispensable.  The Australian property market, renowned for its stability and consistent growth, presents a promising avenue for investors. But, like any investment arena, it's not without its challenges. You're stepping… ... continue reading

Two key roles often need clarification in the construction industry: the estimator and the quantity surveyor. Both are crucial to successfully completing construction projects but perform different tasks.  So, how do you know which professional might be the right fit for your project?  Here’s what you need to know about their distinctive roles, responsibilities, and… ... continue reading

Australia's real estate market has long been an attractive option for domestic buyers. However, with soaring prices in recent years, an increasing number of Australians are turning their eyes to foreign countries for investment opportunities.  This shift has not come without its share of complexities, particularly around tax implications. As an Australian investor in overseas… ... continue reading

Wrapping your head around CGT on subdivided land is essential if you’re a property owners who commonly practices land subdivision to maximise your land value. This is especially the case if you’re prone to creating separate lots from a single, larger parcel of land. Here’s why.  Capital Gains Tax (CGT) and Property: The Basics  Capital… ... continue reading

Do you sometimes feel like you're solving a complex puzzle when dealing with financial terms?  You're not the first business owner to feel that way, and you certainly won't be the last. Among the many financial buzzwords you've probably come across, 'book depreciation' and 'tax depreciation' might stand out. They play a pivotal role in… ... continue reading

For many Australians, retirement is a phase in life that signifies relaxation, travel, and pursuing hobbies. But, remember that a comfortable retirement needs careful financial planning. Property investment is a popular strategy.  If you want to make money from investment properties during retirement, you might have some questions. We hope to answer them for you… ... continue reading

As a property investor, understanding the nuances of the Australian taxation system is key to maximising the potential of your investments.  Overlooking certain areas could mean missing out on substantial tax deductions, impacting the profitability of your portfolio, such as deductions related to strata title fees or body corporate fees. In this blog post, we'll… ... continue reading

Let’s say you’re a tenant who has just invested in a new fit-out for your leased property. You’ve installed office partitioning, desks, and other fixtures to create an ideal workspace. On the other side of the coin, you’re a landlord who has just welcomed a tenant with a brand-new fit-out.  In both scenarios, the question… ... continue reading

The plant and equipment depreciation rate can be complex to navigate. This powerful—yet often overlooked tool—can be a weapon for savvy investors. Tax deductions such as this can substantially improve an investor's bottom line; however, many fail to take full advantage of them.  It often boils down to a lack of understanding about depreciation, how… ... continue reading

Have you encountered someone who invested in an older property, only to see them pass up on claiming depreciation because they believed it exclusively applied to brand new properties? Or have you witnessed an investor tangled up in the web of different depreciation rates, trying to decide which to choose from?  Perhaps you need some… ... continue reading

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Selling an investment property in Australia often raises concerns about Capital Gains Tax (CGT) and how it will impact your overall profit. While there’s a lot of discussion on how to reduce capital gains liability and utilise the concessions and exemptions provided by the Australian Tax Office (ATO), relatively little conversation exists about situations where… ... continue reading

Episode 3: Property Blueprint Podcast In the third installment of the Property Blueprint, we have ‘Chief Money Friend’ Arkadiusz Bryl, Founder and Financial Adviser for Real Knowledge, Diverse Solutions, whose primary focus is helping individuals save more, invest better, and gain or reclaim better control over their money. Download Episode 3 What Topics Are Covered… ... continue reading

The Property Blueprint: All New Podcast for investors, by investors. We have some BIG news to share with you. It's something the team at Duo Tax have been working on for a while now and we're so excited it's finally here. This is a game-changer on the tips and insights we share and I'm confident… ... continue reading

Improvements, repairs, and maintenance. All sound similar but are treated differently by the Australian Tax Office (ATO). When you buy an investment property, particularly a second-hand property, you’ll quickly find out that there are all sorts of costs that you’ll incur when renting out your investment property.  A key aspect to consider is the tenancy… ... continue reading

Depreciation on Leasehold Improvement When leasing a commercial rental property, tenants must often modify the space to suit their specific business needs. For example, a restaurateur may need to install a custom kitchen to accommodate their unique culinary offerings, while a creative studio might require specialised equipment and soundproofing for their warehouse-turned-workspace. In most cases,… ... continue reading

What is Negative Gearing Australia? As you embark on your investment journey, choosing a strategy that aligns with your financial goals is crucial. Your strategy can impact your tax obligations, property holding period, location, and many other factors. There are also countless strategies to choose from, each with their own benefits and drawbacks, and you… ... continue reading

How far back can you claim depreciation? This has to be one of the most frequently asked questions we get. Many property investors hold onto their investment properties for years without realising the potential tax benefits they can claim through depreciation. It's only when they finally discover this deduction that they realise the extent of… ... continue reading

Investing in property can be an excellent way to build wealth and generate passive income, but you need to remember that owning a rental property also comes with financial responsibilities.  One of these responsibilities is managing your tax liability effectively, and many property investors overlook a crucial tool for doing so: depreciation.  Depreciation allows you… ... continue reading

As you explore the Australian Federal Budget 2023-24, you'll find a variety of measures aimed at improving the nation's economy and addressing key issues.  The budget, delivered by Treasurer Jim Chalmers on May 9, 2023, focuses on several critical areas, including health, housing, and cost-of-living relief.  As you delve more deeply into the details of… ... continue reading

Investing in property can be a lucrative venture, especially if you can increase the market value of your portfolio. One of the most popular methods to do this is through renovations.  Whether you're looking to modernise an outdated space, increase the size of a property, or simply make the space more attractive to potential renters,… ... continue reading

The pursuit of owning property has long been a part of the great Australian dream, and for many, investing in multiple properties is seen as a surefire way to build generational wealth. However, it's important to remember that investing in property, like any investment, comes with inherent risks. Savvy investors must consider these risks and… ... continue reading

Investing in a self-managed super fund property has become an increasingly popular strategy in Australia, offering SMSF members greater control and flexibility over their retirement savings. With the ability to invest retirement funds directly in real estate, many SMSF trustees are considering using their fund to purchase residential or commercial self managed super fund property.… ... continue reading

Depreciation is a topic that often confuses those in the property investment industry. While some ask is depreciation an expense? it's widely known that depreciation can provide significant tax savings yet the mechanics of how depreciation works can be hard to grasp.  After all, an asset losing value doesn't seem like it should equate to… ... continue reading

Want to know how you can reduce your tax liability? Check out these eco-friendly upgrades that offer investment property tax benefits to boost your cash flow. ... continue reading

You can use equity to help you buy a second property without needing to save up thousands of dollars for a deposit. Discover how it works in this post. ... continue reading

Paying tax as an investor can be frustrating, as it can eat into your profits and reduce the overall return on your investment property.  Fortunately, the Australian Tax Office (ATO) offers a range of sizable Property Tax Deductions for investors to help alleviate the burden of paying taxes on your rental income. These property tax… ... continue reading

As a property investor, it's essential to be aware of all the different tools at your disposal to help maximise your returns. From leveraging equity as a means of growing your portfolio to taking advantage of negative gearing for a lower taxable income, there are many ways you can boost your returns. One often under-utilised… ... continue reading

Learn everything you need to know about property tax depreciation - commercial vs. residential, how to claim, and the differences in depreciation rules. ... continue reading

In this blog post, we explore the current state of Australia's interest rates and what it could mean for your property investment & home loan repayments. ... continue reading

The Reserve Bank of Australia (RBA) has increased the cash rate to a historic 2.6%. You can find out how this affects you and your investments here. ... continue reading

Find out what the latest changes are to the ATO investment property depreciation rules and how they may impact you. ... continue reading

The Australian housing market has been booming in recent years, with prices rising steadily in most major cities. As a result, many people who own their own homes are exploring switching to an investment property.   The Australian Tax Office (ATO) plays a crucial role in this transition, as it’s important to understand the tax implications,… ... continue reading

In an effort to address the economic consequences brought about by the coronavirus pandemic, the Australian Government introduced various economic stimulus measures. The goal was to help eligible businesses recover from the impacts of being in lockdown.  Beyond the cash incentives, the Australian Tax Office (ATO) introduced various tax incentives for businesses, including the Instant… ... continue reading

Commercial real estate is a great investment for people who are looking to diversify their portfolios. However, there are some things that you need to consider before buying commercial property.  For example, you need to consider factors such as the physical condition of the property, strategic location, investment goals and current budget. But, sometimes, investors… ... continue reading

Given the circumstances in which the Australian Government had to hand down the budget speech last year, there was a feeling of relief in the air when the 2021-22 Federal Budget was given on 11 May.  This year’s budget has shifted the budget from focusing on achieving a surplus to ensuring that the low to… ... continue reading

If you’re selling your home or acquired property through inheritance, you’ll need to obtain a retrospective valuation property report. Yet, so many property investors and property owners are unaware that you need to know the current value of your property and the value on the day you acquired it.  This is where a retrospective property… ... continue reading

A capital gains tax property valuation is required by the Australian Tax Office (ATO) to calculate the capital gain you may have made on the sale of your investment property.  Valuations are required for several tax reasons. For capital gains tax purposes, a valuation is used to set the cost base. But, while it is… ... continue reading

A Quantity Surveyor advises on all aspects of construction costs, from estimating and tendering to contract administration and project management. They work with clients, architects, engineers, planners and other professionals to complete construction projects on time, within the budget and to the required quality standards.   While Quantity Surveyors are essential to get construction projects done,… ... continue reading

A duplex house is among the most common dual-income investments in Australia.  This is mostly because duplex houses have become one of the most popular ways to deal with housing affordability across the major cities.  They take up the same amount of land as a single home, but they are subdivided to support two homes. … ... continue reading

With property prices rising, it’s easy to understand why investing in granny flats has become a popular investment strategy.  In 2018, around 6000 granny flats were built in New South Wales alone. The increase in popularity of granny flats can also be credited to state-level legislative changes to improve housing affordability in capital city areas.  … ... continue reading

Currently, at least one-third of Australians live in rental homes. The statistic continues to grow in our capital cities, with at least 70% of Sydney residents renting their homes.  Individual investors own most rental houses. So, unfortunately, this means that rental contracts are generally short-term, and under most contracts, landlords have the power to cancel… ... continue reading

If you are looking to renovate your investment property, you will want to consider assessing the scrap value of any assets you plan on demolishing or throwing away.  Did you know that assets that are going to be thrown away or “scrapped” can be claimed for 100% of their current value as a loss?  What’s… ... continue reading

Have you heard of dual-key homes? You’ll need to decide on an investment strategy based on your property investment goals. Deciding on a property investment strategy can be daunting, but an excellent place to start is considering all your options, including dual-occupancy home designs. Dual-key homes are a relatively recent concept in Australia, so we… ... continue reading

When it comes to property investment strategies, positive gearing is considered one of the more conservative approaches, with most investors leaning towards negative gearing.   According to the Australian Taxation Office (ATO), around 30% of Australians own an investment property, with 40% of those being neutrally or positively geared. That means that 60% of investment properties… ... continue reading

As a property investor, there are several investment property taxes that you need to be aware of when dealing with investment properties.   While the Australian Tax Office (ATO) affords investors various tax deduction benefits, paying investment property tax is an inevitable component of owning an investment property.   For example, investors are required to pay tax… ... continue reading

Property investment for beginners can seem quite daunting.  For example, how do you choose the right type of property? What is the home loan process, and which property investment strategy works best? The good thing is that you’ve already conquered the first step: deciding to climb the property ladder and create wealth! Now the next… ... continue reading

An investment property depreciation schedule is among the most beneficial but underused tools available for property investors to maximise their tax returns. All property investors want to pay less tax, yet 70% of investors don’t benefit from tax depreciation deductions because they don’t order an investment property depreciation schedule.  Are you a property investor that… ... continue reading

Have you thought about buying commercial property but been swayed by the perceived higher risk or the misconception that only wealthy investors can afford it?  While it may seem daunting to step into the commercial property market, it’s not out of reach - you just need to dig a little deeper into your research.  Arming… ... continue reading

Buying an investment property can be a great way to climb the property ladder and create wealth.  However, one common misconception among many first-time property investors is that buying an investment property will always result in positive returns.  While this could be true, it certainly doesn’t happen overnight. Not only do you need to manage… ... continue reading

Did you know that 70% of Australian investors don’t buy a tax depreciation schedule for their investment properties?  Depreciation schedules are among the most effective but underused tools available to property investors to maximise their returns.  When you think that depreciation is the second-highest tax deduction on your property after interest on your loan, it’s… ... continue reading

Are you looking to climb the property ladder but can’t afford to buy in the area where you want to live? Rentvesting could be your key to entering the property market.  The ever-increasing property prices have had many new investors weighing up the issue of lifestyle versus property ownership.  However, the rentvesting home-owning strategy has… ... continue reading

The Ultimate Guide to Simplified Depreciation Rules for Small Businesses One of the ways in which you can maximise the tax deductions for your small business is through the simplified small business depreciation rules offered by the Australian Tax Office. Understanding the expensing rules related to tax incentives for asset purchases is crucial, especially when… ... continue reading

The decision to purchase property through an SMSF requires careful consideration. This is perhaps why, in June 2019, the Australian Tax Office (ATO) reported that of the total estimated value of assets held by the almost 600,000 SMSFs, investment property only makes up about 13%.  Nonetheless, using an SMSF to buy an investment property seems… ... continue reading

The Ultimate Guide on Depreciation Effective Life of Assets in Property  You’ve just purchased your first investment property and are looking for ways in which you could reduce your taxable income through tax depreciation.  Understanding the effective life of your assets is not just a way to maximise tax deductions, but also a smart financial… ... continue reading

As a first-time property investor, we’re sure you have heard that tax depreciation deductions, specifically capital works deductions, are typically one of the largest tax deductions you can claim as a property investor in Australia.  But it can be quite overwhelming navigating through the different claimable tax depreciation deductions.  For example, you may know that… ... continue reading

Deciding on the best property investment strategies for you can be daunting, especially if you’re a first-time property investor.   But give yourself credit!  You’ve already accomplished a big part of the daunting task – making the actual decision to invest in the property market.  If you can take one bold step towards a flourishing investment… ... continue reading

Remember when you first dived into property investing and heard about capital gains tax? It seemed like a distant concern. But now that you're considering selling your first investment property, the thought of capital gains tax slicing into your profits seems far from ideal. Fortunately, there's a silver lining.  In fact, there are three ways… ... continue reading

You’re thinking about having your rental property become your main residence. But you aren’t sure if the decision comes with any tax consequences. Will the move affect the tax deductions you claim? Is it possible to turn my rental property into my main residence and still rent a part of it out? Will you still… ... continue reading

Not sure if stamp duty is tax-deductible? You’re not alone. Many first-time investors find themselves asking: is stamp duty tax-deductible? It’s not surprising because stamp duty is the one acquisition expense that is likely to poke a significant, perhaps unexpected, hole in your budget. This article will equip you with all you need to know… ... continue reading

The low value pool deduction is a clever strategy that lots of property investors don’t realise they can take advantage of during tax time.  So what can you do to make sure that you can keep more money in your pocket? By using low value pool deductions, you can depreciate the value of your assets… ... continue reading

Property investors can save thousands of dollars by simply understanding the capital gains tax property six-year rule.  A capital gains tax event occurs when you sell your property, triggering the need to calculate and potentially pay CGT.  Additionally, you can save money by understanding the consequences of capital gains tax (CGT) before you rent out… ... continue reading

Airbnb tax deductions and the interpretation of how taxation laws revolve around using your property for Airbnb cause a lot of confusion, to say the least.  Not only are investors keen to find out what they can claim, but they also need to understand how much they can claim and the implications of capital gains… ... continue reading

As a property investor, you know that maximising your returns is key to your success. One way to do this is by taking advantage of tax depreciation, which allows you to claim deductions for the wear and tear of your property over time. But with two depreciation methods to choose from - prime cost or… ... continue reading

Owners and operators of commercial property such as industrial warehouses or manufacturing sites are eligible to claim commercial property depreciation, which includes both capital works and plant & equipment. The term ‘depreciation’ refers to the tax deduction available to the owner or operator of an income-producing property. The gradual depreciation of the building, otherwise known… ... continue reading

As property investors, there are a myriad of documents required at the end of the financial year to maximise your cash flow from a tax perspective. Depreciation is the second largest property expense after interest charged by lenders and can translate to a substantial gearing advantage for the life of the property. Thus, it is… ... continue reading

There are key things to consider when we're talking about investment property tax depreciation. When you buy a new property and you're considering whether to live in it or to rent it out as a rental property, you should understand the implications on tax deductions as this can have an effect on what you can… ... continue reading

The federal government has recently enhanced the instant asset write off scheme in response to the coronavirus outbreak which has disrupted the economy. It is now a crucial time for business owners to capitalise on the cash flow benefits available through this scheme as eligible assets under $150,000 can be claimed as an outright tax… ... continue reading

Although depreciation is never the primary reason why you build a new investment property, it certainly has quite a bearing on the cash flow of your property that you cannot overlook. A qualified Quantity Surveyor will help assist with all the necessary reports that are involved in the building of an investment property. The most… ... continue reading

Tuan Duong appeared on the Smart Property Investment Podcast Network with host Phil Tarrant, discussing the most popular depreciation questions that investors ask. Below you can listen to the full podcast. My property is second hand, can I still claim depreciation on it? There are some rules and legislation around what can be claimed, especially… ... continue reading

Have you purchased or already own a property which is second hand or existing? It is a common misconception that existing properties do not yield any worthwhile depreciation. At Duo Tax, we are actively educating investors on the relevant laws and tax deductions available within investment properties and find that the above is not always… ... continue reading

Tax Return deadline for self-lodgements to the Australian Tax Office (ATO) For your 2018-19 tax returns, it is important to keep in mind the deadlines set by the ATO. Tax returns must be lodged prior to the 31st of October 2019 as any lodgments made after this date may be subject to a ‘failure to… ... continue reading

If you are looking to renovate an investment property, you will want to consider getting a scrapping report to immediately deduct assets you plan on demolishing or throwing away. Assets that are to be thrown away or “scrapped” can be claimed for 100% of their current value as a loss and offset your taxable income.… ... continue reading

As we're not far out from the End of Financial Year, I would like to remind you to ensure all your documents are prepared prior to lodgement, this also includes the tax depreciation schedule for any properties that you may have recently purchased. Enquiries submitted before 30 June 2019 will allow me to issue tax… ... continue reading

When it comes to claiming depreciation on your rental properties, two things will be accounted for in a report. These are Division 40 (Plant and Equipment) and Division 43 (Capital Works). Knowing the difference between these two is key to getting the most out of your tax deductions.  What is Division 40?  Plant and equipment… ... continue reading

The world of property investment can be complex, particularly when understanding tax benefits and financial strategies.   One often overlooked yet significant advantage for apartment investors in Australia is the concept of depreciation.   This guide breaks down the essentials of apartment depreciation, helping investors with their tax benefits and making informed decisions about their property investments. … ... continue reading

Although depreciation is never the primary reason why you buy property, it certainly has quite a bearing on the cash flow of your property that you cannot overlook. There are many considerations that must be made when you are deciding whether to purchase an existing property or a brand-new property for investment purposes.  As outlined… ... continue reading

Along with residential houses, tax depreciation can also be claimed through commercial properties. As a landlord or tenant, you are eligible to claim depreciation on commercial properties. Landlords are given the ability to claim capital works deductions as well as previously installed plant and equipment. Tenants can deduct the plant and equipment that was fitted… ... continue reading

As an investor, you may have recently come to terms with depreciation and may have been unaware that you were entitled to claim deductions on your rental property. You may have thought your property was too old when it actually qualifies for depreciation – act now before it's too late! Besides the ATO allowing you… ... continue reading

As a result of the changes from the Federal Budget 2017, claiming depreciation on substantial renovations on properties has vastly changed. Before the recent law changes, landlords were entitled to claim depreciation on pre-existing plant and equipment and any renovations that the previous owner carried out. As the new legislation has passed, properties purchased after… ... continue reading

With legislative changes well sunken into the property market, it is important to visit the pattern as an investor moving into future years. Legislative changes imposed on the 9th of May 2017, no longer allows property investors to claim what is known as Division 40 depreciable assets on previously used assets for residential properties. Division… ... continue reading

As we approach the end of the financial year 2018, Duo Tax Quantity Surveyors look back to see the impact and reach of legislation. In summary, most investors have no idea about the changes. The change can result in losing up to $50,000 worth of tax deductions without understanding their eligibility criteria. Making it more… ... continue reading

Gearing versus cash flow on an investment property. What is the difference? We've mentioned previously the differences between negative and positive gearing. We also delved into the tools available to boost cash flow to improve this gearing position i.e. loan structures to minimise interest rates and reduce those interest repayments. Crucially important for the avid… ... continue reading

As we move into property investing, it's very important to understand the dollars and cents of your investments - the gearing position. It gives you a real snapshot of your hard-earned dollars' true financial makeup and whether those are working for you. After all, that is why we all decide to invest in the first place!… ... continue reading

Also known as Capital Works | Building Write-Off | Building Allowance. Division 43 Capital works refer to the items that make up the building and those that are fixed to the building. Here are some items you could depreciate part of the building: ResidentialCommercialBuilt-in wardrobesBuilt-in workstationsToilets and vanitiesCar parking spaceBasins and sinkGlass partitionsConcrete slabKitchenetteRetaining walls and… ... continue reading

Division 40 (also known as plant & equipment, depreciating assets or capital allowance) is the category for assets that are not attached to a building but can be removed. This includes appliances and furnishings. Each plant or equipment on your property has an effective life measured in years.  The tax commissioner determines the effective life… ... continue reading

Frequently we are asked why I should get a Quantity Surveyor to assist me with assessing depreciation on my investment property when it seems like an accountant can figure out? A quantity surveyor is a tertiary-qualified professional that is degree qualified in the Science of Construction. This person as part of their education has completed… ... continue reading

I’ve just purchased a very run-down property and it needs a new kitchen & bathroom. Should I purchase a depreciation report? If so, how can a depreciation report help me with writing off older equipment? With any existing kitchen and bathroom, although that may seem quite old, there may indeed be some residual value in… ... continue reading

My rental property was built in the 50’s. Can I still claim depreciation? Yes. In fact, with older properties, the Australian Taxation Office (ATO) allows appliances such as stove tops and ovens to depreciate much faster. After including many other old items, such as blinds and carpets, you are looking at $4000 to $5000 in tax… ... continue reading