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Future Tax Return Articles

Top 10 requests

Here is an expanded list of ten Australian-based articles that are highly semantically relevant to doing your 2023 income tax return:

  1. “Tax return for individuals 2023 | Australian Taxation Office”
  2. “What’s new this year? 2023 | Australian Taxation Office”
  3. “Tax return 2023: The changes that will affect your personal 2022-23 tax return, including the end of the LMITO and changing work-from-home deductions”
  4. “Individual tax return instructions 2023 | Australian Taxation Office”
  5. “Why is my tax return refund so low this year? What can I claim? And why you shouldn’t rush to lodge your tax return - ABC News”
  6. “2023 Federal Budget Tax Updates | H&R Block Australia”
  7. “2023 TAX RETURNS AND REFUNDS - ADF Financial Services Consumer Centre”
  8. “Tax return for individuals (supplementary section) 2023”
  9. “Tax return | Australian Taxation Office”
  10. “What’s new this year? 2023 | Australian Taxation Office”

Is there anything else you would like to know?

 

Top 5 Tax Videos | 2023 Gotax

 

What is a tax deduction?

 

Why Tax Deductions aren't always the best thing to have?

 

Top 5 Tax Mistakes

 

 

Car

dd

draft Includions

Transport costs tax return

 

Use Gotax's Deduction Grabber App to track those expenses and never lose a Tax Deduction again.

Start your Tax Return NOW!!  Gotax.com.au

Ref: ATO 

For more related Articles:

Rentals to do

Second-Hand Depreciating Assets and Rental Properties

Second-hand depreciating assets are items that can lose value over time and are used in a rental property.

These can include things like flooring, air conditioners, and washing machines. Since 1 July 2017, you can’t claim the decline in value of these assets on their taxes unless the property is used for a business, they are an excluded entity, or the property was rented out before this date. There are some exceptions to this rule. You can find more information about this in the 2023 Rental properties guide.

https://www.ato.gov.au/forms/Rental-properties-2023/?page=4#Limitondeductionsfordeclineinvalueofseco

Rental Properties Guide

https://www.ato.gov.au/forms/Rental-properties-2023/

 

 

 

 

Residency

https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/New-one-stop-shop-ruling-on-residency/

 

Capital

 

https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-Time/Tax-time-toolkits/Tax-time-toolkit-for-investors/?=redirected_sharesfactsheet&anchor=Capitalgainstaxonthesalesofsharesorunits&#Capitalgainstaxonthesalesofsharesorunits

 

Capital gains tax on the sales of shares and units


With 75% of investors holding shares and other on-exchange investments, our fact sheet can help guide conversations with clients who are thinking about selling.

 

Rental Property Deductions | Online tax

These are your main Rental Property Deductions for 2024

When it comes to managing rental properties within the Australian Taxation System, there are several allowable deductions that property owners can claim. Maximising the benefits of your rental tax deductions by ensuring you capture all you can claim.  And don't forget to download the ultimate record keeping App, the Deduction Grabber and never miss a tax deduction again.

Dedcution Grabber

Interest on Property Loans 

One of the most significant expenses for many property owners is the interest on their property loans. The Australian Taxation Office (ATO) allows landlords to claim the interest charged on a loan if the funds were used for the property.

Council and Water Rates

Council and water rates are another expense that landlords can claim as a deduction. These costs are necessary for maintaining the property and ensuring it is suitable for tenants.

Property Management Fees

If you employ a property manager to take care of your rental property, their fees can also be claimed as a deduction. This includes the cost of advertising for tenants and the commission paid to the property manager.

Insurance

Insurance premiums for building, contents, and public liability insurance are considered allowable deductions. This ensures that you are covered in case of any damage to the property or legal issues.

Repairs and Maintenance

The cost of repairs and maintenance to the property can be claimed as a deduction. However, it’s important to note that these must be for general upkeep of the property, not improvements.

Depreciation of Assets

Lastly, the ATO allows landlords to claim a deduction for the decline in value of depreciating assets. This includes items such as appliances and furniture within the property.

Your rental investment matters. 

By understanding and claiming these tax deductions can make all the difference in the financial viability of your property investment.  For an easy and efficient way to manage your tax return, visit www.gotax.com.au. Gotax is a user-friendly platform that makes completing your income tax return online a breeze.

 

Rental Interest Deductions | Online Tax

Can I deduct the Interest on my Rental Property?

Yes you can deduct any interest from your rental property income.  Interest on property loans is the big ticket item when investing in rental properties.  If you take out a loan to purchase a rental property, you can claim a deduction for the interest charged on the loan or a portion of the interest when the loan is also used for other purposes or the rental property is used for private reasons for some time during the year. 

You cannot deduct the repayments in full unless your loan is "Interest only".

It’s important to note that you cannot deduct any payments that go towards the principal balance of the mortgage.  Most property loans are principle and interest loans.  Your repayments are calculated to include the completion of your loan, in full, in 20 or 30 years time.  Included in that repayment will be an amount that goes to reduce the Principal value of the loan.  That principal component is not tax deductible.  Check your statements or ask your funder to provide the interest they have charged you in a financial year.  The repayments on "interest only" loans are of course totally deductible, as there is no principal reduction on the loan occurring.

Rental Loan Example

Let’s consider an example. Suppose you have a rental property for which you’ve taken out a loan of $500,000 at an interest rate of 5%. This means you’re paying $25,000 in interest per year. You can claim this entire amount as a deduction on your tax return, reducing your taxable income significantly.

Borrowing Costs

In addition to the interest, borrowing expenses are also tax deductible if they are incurred to obtain the loan you are using for your rental property. These expenses include loan establishment fees, lender’s mortgage insurance, title search fees charged by your lender, costs for preparing and filing mortgage documents, and mortgage broker fees. If your total deductible borrowing expenses are more than $100, you spread the deduction over the shorter of either: 5 years or the term of the loan.

Deduction Grabber

Keeping track of all these expenses and deductions can be a daunting task. That’s where tools like “Deduction Grabber” come in handy. This app helps you keep track of all your expenses and deductions in one place, making it easier to manage your finances and prepare for tax time.

eCashbooks

Have more than one rental property and finding it hard to record transactions for each.  Consider eCashbooks to keep on eye on them for you.  

Finally, when it’s time to file your tax return, you can visit www.gotax.com.au. It’s a user-friendly platform that makes lodging your income tax return online a breeze. With all your deductions at your fingertips thanks to “Deduction Grabber”, you’ll be well-prepared to get the most out of your tax return.

Get Deduction Grabber NOW

Rental Deduction Grabber

You want More?

The most common deductions for Rental Properties

Council & Water Rates deductions

Property Management Fees

Insurance

Repairs and Maintenance

Depreciation of assets

Common deduction traps when first claiming your property purchase

 

 

 

 

 

 

 

Rates on Rentals | Online Tax

Can I deduct my Rates expenses on my rental property?

Yes you can claim Council and Water Rates on your rental property.  Council and water rates are recurring expenses that property owners in Australia need to pay. These expenses are considered allowable deductions for rental properties under the Australian Taxation System.

Council rates are levied each year for the period of 1 July to 30 June. You can choose to pay your rates in a lump sum or in four equal installments due on the last day of the months of September, November, February, and May. Water rates are usually adjusted to the end of the current quarter.

Rental Example for Water Rates and Council Rates

For example, if you pay $2,000 annually for council rates and $500 for water rates, these amounts can be claimed as deductions on your tax return. This means that these expenses will reduce your taxable rental income, thereby reducing the amount of tax you need to pay.

It’s important to note that to claim these deductions, you must have actually incurred the cost. You can’t claim a deduction where the cost is paid by the tenant.

Deduction Grabber to track your Rates

Keeping track of these expenses can be a bit challenging, but with the help of the “Deduction Grabber” app, you can easily record and manage these expenses. When it’s time to file your tax return, you can visit www.gotax.com.au. It’s a user-friendly platform that makes filing your income tax return online a breeze. With all your deductions at your fingertips thanks to “Deduction Grabber”, you’ll be well-prepared to get the most out of your tax return.

Rates and rental Properties