GST and Property

by with No Comment GST (Goods and Services Tax )GST and PropertyGST InstallmentsProperty RepairProperty Tax Deductions

Tax payers or individuals who want to sell, give on lease or transfer the lease are required to register Goods and services tax (GST) on property by ATO guidelines.

In this stage we usually speak more common words like property instead of using the legal term “real property”.

Property can be defined as:

  • land
  • land and buildings
  • an interest in land, rights over land or licence to occupy land of individual

By ATO term of supply includes sale, lease, transfer of rights, or similar dealings in property.

The GST treatment of property varies depending on the type or its purpose.

Property and registering for GST

You don’t need to registered GST if:

  • If you do your property transactions are for private purposes rather than work purposes, such as constructing your home or selling your home
  • you only receive residential rent from your property rather than business purposes

However,You need to registered your GST, even if you are not a business transactions, 

If you have:

  • The property transaction of your business  and other taxable transactions is greater than GST threshold amount
  • your activities are Considered as ‘entity’ or ‘enterprise’ for example –  If you buy land or house for profit purposes and again resale for more money and only intention to gain profit. So here, one-off property transactions may be related to an enterprise.

If you really want to register for GST, You need to require ABN first.

If you’re required to register for GST you need an ABN.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Myths and the Facts about Work Expense Deductions

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There are some myth which is totally wrong and people sometimes misleading by false information.

There are some myths about tax deduction for hairdresser-homilies what-your-taxi-driver-just-heard and many others.

Over the past years ATO faced many issues related to deductions and many people calim wrong deductions such as — dental expenses, gambling losses, Lego sets, and even the cost of a wedding reception.

The myths are stated about what you can claim and what you are not able to claim it’s depend on your work and occupations.

For example, if you used car 70% for work purposes whereas 30% of car used for private purposes.

So, you can claim only 70% car expenses as deduction rather than whole 100% as deductions. but keep in mind you need to keep record for expenses. so, you can prove to ATO for your expenses.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Property Depreciation and Deduction

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According to legislation introduced in 2017, If you previously plant and equipment, you are not able to do claim as a deduction who decline in value.

If the investor lives in their rental property while renovating, and if you installing any new assets which will considered as previously used.

Therefore, the investor gets risk for only tax benefits.

But on the other side, one good reason for investor is that while installing new plants and equipments assets and then rented out; you may be eligible to claim depreciation deduction from ATO. Please note that the 2017 legislation does not affect buyers of brand-new property.

Brand new property generally holds high value in market.

Structural assets includes new walls, kitchen cupboards, toilets and roof tiles are also unaffected by the legislation changes and it can be claim by owners.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

What’s the difference between a repair and an improvement?

by with No Comment Property RepairProperty Tax Deductions

Repairs means fix the damages of a property. for example changing part of a damaged fence.

Whereas maintenance means main the property, For example, oiling a machine.

Any cost incurred in rental property, you are entitled to claim 100 per cent an expenses as deduction.

A capital enhancement occurs when the situation or value of an item is enhanced beyond its original state at the time of obtain.

This would be classified as capital deduction and plant and equipment depreciation over the time.

An example of a capital works deductions could be replacing the kitchen items. If any plant and equipment items are removed and replaced, for example an air conditioner, this will also be considered a capital improvement.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Property Renovation and Depreciation Deductions

by with No Comment DedcutionsProperty Tax DeductionsRenovating Properties

Australian investors give more preference to renovate their property before leasing them out. There is a risk while renovating the property about spending thousands of dollars in property depreciation deductions.

Interest is the first and then Property depreciation is generally the second biggest tax deduction, though it’s often missed by investors. This is because it’s a considered as a non-cash deduction, meaning you don’t have to spend money to be eligible to claim it.

The Australian Taxation Office allows owners of income-producing properties to claim depreciation deductions for whatever spending on assets that time. You can claim depreciation via building structure and capital works deduction.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Planning on Developing Property?

by with No Comment Business Activity Statement (BAS)Property Tax DeductionsUncategorized

Did you know that if you
build and sell new residential premises you pay GST on the sale? And you can
generally claim GST credits for your construction costs and purchases related
to the sale.

We are identifying and
contacting developers early on in the planning process to help you understand
your GST entitlements and responsibilities.

When a new development
starts we sometimes verify significant refund claims. We may do this if you:

  • lodge a BAS without
    reporting property transactions, or
  • have an outstanding BAS.

If you haven’t lodged
your BAS we’ll remind you so you don’t get behind. When we do this we can
assist you with any questions you may have.

If you need advice from
the ATO about the tax treatment of your development you can lodge a request for
a private binding ruling.

Property development, building and renovating

If you’re renovating one
or more properties you need to work out if you are a personal property
investor, engaged in a profit-making activity of property renovations, or
carrying on a business of renovating properties.

If you build new
residential premises for sale, you’re liable for GST on the sale, and you can
generally claim GST credits for your construction costs and purchases related
to the sale.

Register of Private Binding Rulings

We publish edited versions
of written binding advice in the Register of Private Binding Rulings.

This enhances the
integrity and transparency of the private ruling system and confirms for the
recipient that it is official ATO advice. The advice is edited to protect the
secrecy and privacy of the applicant.

Status
of versions published in the Register

The edited versions of
written binding advice published in the Register can’t be relied on by
taxpayers or their advisers in any way. They can’t be relied upon as precedent
or used for determining how the ATO will apply the law. The records in this
Register are not binding and provide no protection.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Investment Property Tax Deductions

by Property Tax DeductionsTax Return 2018Tax TopicsUncategorized

This is a brisk check rundown of deductions for property speculators to assert against the salary (or potential wage) from the leasing of property. It is a guide, not a thorough rundown, there are comprehensively two sorts of rental expense conclusion accessible:

Findings accessible under expense arrangements –, for example, Capital Allowances; and general findings which require that there is an association between the cost and the acquiring of rental salary, changed in accordance with prohibit any capital, private or non-deductible parts

Financial plan 2017 – travel and devaluation costs diminished, and a charge for remote proprietors

Emerging from 2017 spending measures declarations, the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 gives that: travel consumption brought about in procuring salary from private premises isn’t deductible and can’t shape some portion of the cost base of the property for CGT purposes.

Deterioration reasonings to be not any more accessible for ‘already utilized’ devaluing resources utilized as a part of winning salary from private premises utilized for private settlement – applies for resources procured from 9 May 2017

Prohibitions: corporate duty substances, superannuation designs (other than SMSFs), open unit trusts, oversaw venture trusts and unit trusts or organizations of any of the above elements the un-deducted devaluation is perceived for CGT purposes

A yearly opportunity expense will apply to remote proprietors of private land where private property isn’t possessed or truly accessible on the rental market for no less than a half year in a year period.  The charge will apply from 7:30PM (AEST) on 9 May 2017.The expense is what was payable at the season of the outside venture application.

Deductibility of costs extensively relies upon whether there is a required association between the cost, and a benefit making reason, for this situation rental. Circumstances where an investment property is utilized for part of the year for private purposes by and large require that claimable costs are allocated to the period(s) for which the property was leased, or truly accessible for lease. The conditions of occasion houses in such manner are examined here.

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au