One of the common things I hear at tax time by those who have a rental property is “show me the money” – well I don’t hear it like that but essentially that’s what is meant!

The final outcome on your tax return when you have a rental property is dependent on your individual property circumstances as well as your other circumstances all combined – it is impossible for me to suggest a likely outcome in this forum simply because everyone is different…

But one tool you can use to increase your rental deductions is known as rental depreciation.  A rental depreciation report must be prepared by a Quantity Surveyor (so please don’t ask me to do it for you…) and you should arrange one of these reports as soon as possible after the purchase of your rental property.  Note: Real estate agents, property managers and valuers are unable to prepare this report either, it must be done by a quantity surveyor.

As your accountant, I will include this depreciation in calculating your tax income for the given year and I can vary your last two years of tax returns if you’d like to go back and claim retrospectively.

The cost of obtaining the report varies among service providers but at least it is tax deductible also!

Regards

As we enter the last month of the FBT year (Fringe Benefits Tax), if you are lucky enough to be offered salary packaging  with your employer, now is the time to review it!

There are generous tax concessions for not-for-profit (NFP) organisations including an exemption from FBT.  This means that as an employee of a NFP, you can receive part of your wage as a reimbursement for personal expenses and you won’t pay income tax on this amount!

Depending on who you work for, your salary packaging limit may be $9,010 or $15,900 – either way there is usually a substantial benefit to accessing this opportunity if it is available to you.

This reminder comes now, as you should consider your personal circumstances as you enter the new FBT year and ensure your claims and records are up to date.

One thing you do need to be aware of is that having a HELP (Higher Education Loan Program) debt may impact on the effectiveness of any salary packaging agreement you enter into – so always get advice first!

Regards