TAX DEPRECIATION REPORT PRICE DEAL
Melbourne Tax Depreciation is offering a special price deal for the month of February.
10% of you first year claim is all you will pay.
At MTD we ensure that you receive the maximum deductions for your Investment property. Our Tax Depreciation Schedules are comprehensive and fully ATO compliant.
Call now and mention this add and speak to one of our specialist Quantity Surveyors.
03 9873 7144
Foreign investors vs first-home buyers: How NSW and Vic are threading the needle
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This article sheds light on the state of the property market and the impact of the recent stamp duty changes. Additionally the changes to Investment Property Depreciation, are likely to impact the market a little further by driving investors towards new rather than existing properties. Also likely is that rents on existing properties are likely to show some increase as investors saddled with reduced Depreciation strive to maintain their cash flows. Further information in relation to Property Depreciation Reports can be obtained by visiting our website www.melbournetaxdepreciation.com.au or contacting us directly to discuss your individual circumstances.
How much your home loan repayments could rise this year – and how to stop it
https://search.app.goo.gl/TdHD
This advice is also appropriate for property investors and coupled with obtaining a Tax Depreciation Schedule can maximise your cash position. For further information, contact the specialist’s at Melbourne Tax Depreciation or visit us at http://www.melbournetaxdepreciation.com.au
Tax Depreciation schedules for investment properties is stiill the way to go to maximise you cash flow and improve your bottom line.
Even with the recent legislative changes, there are still advantages to be had for previously used properties.
Contact us for further information. www.melbournetaxdepreciation.com.au
Tax Depreciation Schedules Split 50:50 Increase Joint Owner Deductions
One of the lesser known benefits of being a joint owner of an investment property is that the depreciation claims can be higher overall when split between two or more owners. Splitting a Tax Depreciation Schedule between joint investment property owners will optimise deductions for plant and equipment if done as we do with our Quantity Surveyor Reports.
Tax Depreciation on plant and equipment allows for eligible division 40 items with a value of $1,000 or less to be added to a low value pool and depreciated at 18% in the first year and 37% thereafter. Additionally for residential properties items of $300 or less can be deducted at 100% in the first year.
So the advantage of splitting 50:50 between joint owners is that plant and equipment with original values of $2,000 or less can effectively be added to the low value pool and those of $600 or less can be deducted at 100%.
This is just another example of how we ensure that our property investor clients get the best possible tax deductions from our Quantity Surveyor Reports and achieve better cash flow.
Contact us today at Melbourne Tax Depreciation and let us help you achieve the maximum return on your investment property.
Residential tax Depreciation Slashed by Federal Government Legislation 2017
The federal government changes to the depreciation of plant which were proposed in the May budget were passed by the senate on 15th November 2017.
A number of property investors have contacted Melbourne Tax Depreciation as experts in preparation of Tax Depreciation Schedules, to discuss how these changes may affect them.
The good news for investors is that residential properties purchased ( contracts exchanged) prior to 7:30pm on 9th May 2017 are unaffected by the changes, as the prior legislation has been grandfathered.
The changes detailed in the legislation Treasury Laws Amendment (housing Tax Integrity) Bill 2017, essentially deny a subsequent owner’s ability to claim deductions for previously used plant and equipment assets.
(these are things are generally easily removed or mechanical fixtures and fittings) and come under division 40 of the legislation.
These new rules only apply to depreciation of assets (division 40) items in second hand properties
Examples of assets that cannot be claimed under the new tax depreciation rules are those that are:
Previously used (either by you or others); or
Not purchased from a retailer (purchased from a friend or family member is not OK): or
Used in a residence (either your own or someone else’s): or
Used in a non-taxable way such as by friends and family, however occasional use would be OK such as a property being used by family for the odd weekend.
There are however some exceptions to the new rules, they are:
If at any time during the income year you are carrying on a business such as
a corporate entity: or
a superannuation fund that is not a self-managed fund: or
a managed investment trust: or
a public unit trust.
New residential property: or
No one resided in residential premises in which the asset has been used before it was held by the current owner: or
The asset was used or installed in new residential premises that were supplied to the taxpayer within six months of the premises being completed and it has not previously been used or installed in a residence: or
Common property
One thing to remember is, that you lose the depreciation deductions on assets if you do either of the following:
Live in the property for any time as your residence: or
Use the residence for a purpose that is not taxable other than occasional use such as a beach house.
It is important to note that depreciation deductions on assets in new residential premises can still be claimed. and of course, you can still claim all depreciation deductions on assets in commercial and industrial properties such as offices, shops and factories.
Division 43 Tax Deductions (Capital Works)
The legislation does not affect depreciation deductions under Division 43 which covers the ‘bricks and mortar’ or shell, structure and fixed items of the building. This usually totals about half of all residential Tax depreciation claims.
Tax Depreciation Schedule Propjects by Quantity Surveyor Melbourne
Introduction To Investment Property Tax Depreciation Schedules
“Tax Depreciation Schedule was never mentioned to me by my accountant when I purchased my rental property” is what I hear from many property investors I meet. So they ask, “What is a Tax Depreciation Schedule?”
Tax Depreciation Schedules-Prime Cost v Diminishing Value?
Chart of Prime Cost Versus Diminishing Value Methods for Tax Depreciation Schedules Prime Cost Versus Diminishing Value Methods for Tax Depreciation Schedules
What does it mean and what is the difference?
To put it simply, the Prime Cost method gives you equal deductions each year for the effective life of the article.
Whereas the Diminishing Value method gives higher deductions in the earlier years.
