ATO Identifies Claims for Tax Deductions By Property Owners

The ATO has identified certain claims for tax deductions made by property owners, that are areas of concern when claims can be incorrectly made, and in particular the following big four.

Interest

Interest that relates to a rental property that is rented or available for rent is tax deductible. It is irrelevant what security is used for the loan. The ATO is concerned that claims are being made for all of the interest on loans where only part of the loan relates to the rental property or that the loan does not relate to the rental property at all. The question to ask is: Why was the borrowing incurred?. If the answer is: To buy an income producing asset, the interest should be tax deductible. Please note that interest may also be deductible when a property is being renovated with the view to its being rented. Interest may also continue to be deductible after the tenancy has finished.

Depreciation

Welcome to THE Real Estate Blog for Sydney

What were you doing in 1969?

Me?

Well I was heavily pregnant watching Neil Armstrong walk on the moon, as my son was born just a few weeks after. But before that I giggled at the John Lennon and Yoko Ono ‘Love in’ in Quebec. And before that I gazed into the sky after hearing about the first flight of a Boeing 747 and wondered if I would ever have the opportunity to go in a Jumbo Jet.

And just a few weeks before that in late January 1969, I started my career in the Property Management business in Eastwood.

Maybe some of you reading this were not even born in 1969, so for more than your life time I have been managing properties in Eastwood, Epping, North Ryde, Marsfield, Denistone, Meadowbank and many other suburbs in Sydney’s north shore. Maybe some of you were also around in 1969, if that is the case we should get together and have