Confused About New Depreciation Rules Proposed for Residential Property Investors?

Good news, only applies to properties purchased after 9th of May 2017!

 

Thanks to our good friends at BMT Tax Depreciation for providing the following insights:

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The Federal Government has proposed adjustments to depreciation legislation in the 2017 Budget.

Under the new rules which are yet to be legislated by Parliament, investors will be able to depreciate new plant and equipment assets within a new property and items they add to their property; however subsequent owners who acquire a property after 9th of May 2017 will not be able to claim depreciation on existing plant and equipment assets.

Investors will still be able to claim qualifying capital works deductions, including any additional capital works carried out by themselves or a previous owner.

The budget notes were clear that existing investments will be grandfathered. This means that anyone who has purchased a property up until the 9th of May 2017 will be able to claim depreciation as per normal. The new legislation will be in force from 1st of July 2017.

If your fall under this category, you can still claim depreciation on plant and equipment assets for both new and second-hand properties.

BMT Tax Depreciation is currently speaking with government to further understand the intricacies relating to the budget notes and the proposed changes to depreciation and equipment assets.

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Louise Griffin Property Management will keep our investors updated as specifics are clarified.

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Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.

The Stones Corner Festival

This past Sunday, on 30 April 2017, part of Logan Rd was shut down to celebrate the now Annual Stones Corner Festival. It was a wonderful, vibrant event that showcased what our local area has to offer.

The Shady Palms extended out onto the road, and had an extra outside bar to cater to the crowds. The live DJ in the back room of the Shady Palms provided the perfect musical back drop for a relaxing Sunday afternoon on a long weekend.

There were multiple community booths throughout the festival, including Crime Stoppers and fundraisers for MND and Me Foundation. Local Member Joe Kelly was also in attendance. There were delicious food and drinks on offer along with many beautiful craft stalls. A petting zoo along with an impressive array of jumping castles provided family entertainment.

Local stores such as The Record Store, Books @ Stones and Stones Corner Flower Shop all joined in the fun and participated in the day.

The main source on entertainment for the day was the incredible live music on offer, down near the Stones Corner Pub. James Stone Ginger Beer along with other cold beverages went down a treat with the crowds.

The Stones Corner Festival really was a phenomenal display of the local community coming together and celebrating what makes this area special. 

Clean Up Time – Make It Easy For Tenants

With all of the extreme weather lately, now is the perfect time to think about garden maintenance at your property. The Brisbane City Council’s green waste recycling bin is a great way to encourage tenants to keep a properties garden healthy, clean and tidy.

Keeping your property free of debris should be a priority, as it can be dangerous during storm season. Winds and flood waters are powerful forces, the less waste to move and cause damage, the better!

Collected fortnightly, the lawn clippings, pruning and leaves are composted and mulched, ready to be reused. This is a great idea for properties with a large garden. Those who have lived in a house with palm trees know how pesky fallen palm fronds can be, make it easy to maintain.

The “once only” cost for supply is $30, and thereafter $19.99 per quarter. The Brisbane City Council has more information on their website.
Contact our office if you’d like us to help organise a green waste recycling bin for your property.

Depreciation

Many Australians who own investment property will soon be having their accountant process their income tax return. Of these investors, the majority are unaware of how capital gains tax will affect them and what they can claim in relation to property depreciation.

The ATO requires investors to report any capital gain or loss as part of their income tax return. One of the most common ways to make a capital gain, or capital loss is through the purchase or sale of assets including real estate that is being used for investment purposes.

Claiming depreciation on an investment property can make a huge difference to an investor’s cash flow. Many investors often miss claiming depreciation on their investment property as you do not need to spend money for it to be claimed.

As a property gets older, items within it wear out, or depreciate. The ATO allows investors to claim this depreciation as a tax deduction. Depreciation can be claimed by any property owner who derives income from their property.

Investors often assume that a property must be new to claim depreciation deductions. They are unaware that they can claim depreciation irrespective of the age of the property as deductions relate not only to the structure but also the fixtures and fittings in the property.

Fixtures and fittings such as carpet, hot water systems, blinds and stoves attract deductions.

It is recommended that you consult a specialist quantity surveyor to prepare a depreciation schedule before you lodge your income tax return.

Quantity surveyors are recognised to have the appropriate construction costing skills to estimate the building costs for depreciation and are qualified under tax ruling 97/25.

Louise Griffin Property Management can arrange to appoint a quantity surveyor to undertake a tax depreciation schedule for you.  Just give us a call to get things underway.