Investment Property Income Tax Services 2016 South Yarra

Information for Investment Property Owners – How to report your Investment Property Income Tax Services 2016 South Yarra

MAS Tax South Yarra

It’s the start of a New Financial Year and another Tax Season. If you own an investment property, you will need to include any income earned from it on your tax return. There are several factors to consider with your Investment Property Income Tax Services 2016, such as what details you will need to supply to your Accountant, affects to your loan, and negative gearing. At MAS Tax South Yarra, we can organise and lodge your Investment Property Income Tax Services 2016 South Yarra, as well as help you to plan for the coming Financial Year.

What documentation do I need to give to my Accountant for my Investment Property Income Tax Services 2016 South Yarra?

Firstly, you will need to bring the following information to your appointment:

Address
Purchase price
Purchase date
Rental details, including when it was first listed as a rental property
How many weeks during 2016 that it was being rented out

Then, you will need to go into more detail about the rental property, including:

Rent received
Other expenses and the receipts, such as insurance payout, and recovery of disbursement.

Finally, you will need to supply the details about the expenditure, such as:

Real estate agent fees
Council rates
Land tax
Insurance
Interest on loans
Repairs
Depreciation on capital works
Borrowing expenses

Do you know that borrowing expenses can only be deductible in 5 years or more over loan period?

Yes, certain costs incurred when borrowing from banks will have to be deducted within 5 years or over the loan period. This includes the procuration fees, bank survey fee, broker’s commission, stamp duty on the mortgage, lender’s mortgage protection insurance, and so on.

However, there is an exception, which is; if the borrowing expense is $100 or less, it can be wholly deductible in that year.

Can I negative gear a property not located in Australia?

When the expenses exceed the rent and a loss ensues it is known as “negative gearing”. Speciality rules apply to the deductibility of the overseas rental property expenses, and they are to be declared in “foreign sources income and foreign assets or property” part of income tax return.

If my investment property is under construction, can I claim some of the expenses?

Yes. According to the ATO Taxation Ruling TR2004/4

“as long as your intention and purpose when building the new investment property is to derive assessable income (rent) from it when construction is completed within a reasonable time frame, then the bank interest on the loan is tax deductible while the property is under construction, as well as other related expenses, like legal fees, borrowing expenses, etc.”

For more details about rental property, see the ATO website – Click Here