Labor’s negative gearing policy was announced in February 2016. Whilst there has been much debate about the merits of negative gearing and whether negative gearing should be abolished, Labor’s decision to make substantial changes to negative gearing and capital gains tax discount has been controversial. But how does it impact Australian Expats? Craig Joslin, the founder of The Australian Expat Investor, explores the issue.
Did you know that every year people just like you lose money, by not understanding their rental property depreciation entitlements? People short change themselves by not using these rental property tax deductions effectively. Well this article may help you avoid this, and assist you in getting the most out of your tax return. So first of all what is depreciation? Depreciation Depreciation is basically the decline in the value of an asset that you can claim as a tax deduction against your income. To give what could be a more familiar example, after you purchase a car it loses value over time due to various factors including wear and tear. This loss of value is called depreciation. Similarly, your rental property (being the building not the land) starts losing value from the time you purchase it, again due to various factors including wear and tear and the limited life of various fittings and appliances (eg. Hot water systems and… Read More
Have you invested your hard earned money in a rental property, or are you considering it? Perhaps this is for your family’s future or maybe to create some passive income for now and in retirement. Because of this, I know how important it is to ensure that you are maximising your rental property tax deductions. Well, to make sure you are getting the best out of your rental property tax deductions, this short article will provide a broad overview of the deductions available. Some of this advice, can mean more money back in your pocket. I hope you enjoy the article, and find this guide useful. Before we go any further let me explain the three categories of expenses we will be dealing with. 1. Immediately deductible 2. Deductible over a number of years 3. Not deductible 1. Immediately Deductible 1a. Interest on Investment Loan If you are lucky enough, not to have taken out a loan to purchase your… Read More