Property investors need to lodge their tax returns for the 2016/17 financial year by the end of this month (October) if they want to stay in good stead with the Australian Tax Office (ATO).
The last thing an investor should expose themselves to is a penalty from the ATO for failing to lodge their tax return on time.
It would be an unwelcome bite into what depreciation deductions can be made, deductions that may provide a valuable opportunity for investors to maximise their cash flow.
New legislation proposed earlier this year intends to limit plant and equipment depreciation deductions to those incurred by investors in residential properties and those who purchase brand new investment properties. If the new legislation is passed through the senate, the new rules will apply to properties where the contracts of sale were exchanged after 7.30pm on the 9thMay 2017.
If you are an investment property owner and are feeling a little unclear about the new rules, seek clarification from experts such as accountants and quantity surveyors. These people will ensure you claim every legitimate deduction you are entitled to.
Quantity surveyors are valuable as they can inspect a property and outline the available deductions in a tax depreciation schedule. The property investor can then pass this to their tax agent.
Investors, if you haven’t done so yet, it’s time to get your 2016/17 tax in order as the deadline of 31 October is fast approaching.
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