Tax on property investments

ATO
10 March 2020
www.ato.gov.au

 

If you’re in the property business or thinking about investing in property there are things you should know, such as:

  • you need a clearance certificate from the supplier when buying property over $750,000
  • you may have to pay the GST on the sale of brand new residential property separately to the ATO
  • income from property activities could increase your total business turnover.

Make tax time easy by keeping accurate and complete records for the period you own the property and you’re:

  • renting it out as a residential property – even short-term through the sharing economy
  • flipping houses
  • building a new house to sell for a profit.

When it’s time to lodge, remember:

  • Some expenses:
    • need to be claimed over time (such as borrowing costs or capital items like dishwashers)
    • can be claimed as an immediate deduction (such as interest on loans and insurance).
  • You can only claim expenses for:
    • periods when the property is genuinely available for rent.
    • travel related to renting property, if you’re in the business of letting properties.
  • Check if you’re eligible for CGT concessions.

Remember, tax agents and BAS agents can help you with your tax.

 

Find out about:

0

Like This