Are you maximising your common property benefits?
Common property refers to the areas within an apartment complex or development that are shared between owners. In general, common areas are designated areas of a building or land that are available for use by all occupants, tenants or owners. More complicated common areas exist whereby access to certain common areas is restricted by the entitlement the owner is granted over these areas. Investors don’t often realise that common property areas... Read Full Story
A: The low-value pool is an effective rule allowing an increased depreciation deduction available to most investment property owners. Any asset in a rental property which costs less than $1000 can be included in the low-value pool and written off at an accelerated rate of 18.75% in the first year of ownership and 37.5% each year thereafter. There is often confusion concerning assets which form part of a set when their total cost exceeds $1000. For example, if a house has six sets of blinds, ... Read Full Story
Q: What is low-value pooling?
A: Low-value pooling is a way of depreciating plant items which cost less than $1000 or have an un-deducted cost of less than $1000. The following types of depreciable assets can be allocated to a low-value pool:
Low-cost assets – A low-cost asset is a depreciable asset that has an opening value of less than $1000 in the year of acquisition.
Low-value assets – A low-value asset is a depreciable asset that has a written down value of less than $1000. That is, ... Read Full Story
When a tax depreciation report is prepared, your tax specialist should take into consideration any renovations carried out by previous owners.
Even though you may not have carried out the work yourself, there may be depreciation deductions for you to claim.
A thorough site inspection is undertaken on your property and further council searches can also expose previous renovations carried out on the property. Always consult a depreciation expert about your entitlements. Maximising the deprecia... Read Full Story
Effective lives – Explained
The ‘effective life’ of an asset is used by a Quantity Surveyor to work out an asset’s decline in value.
The Australian Taxation Office (ATO) describes an effective life as ‘the period of time that a depreciating asset can be used by any entity to produce assessable income:
assuming it will be subject to wear and tear at a reasonable rate,
assuming it will be maintained in reasonably good order and condition, and
having regard to the period within which it is lik... Read Full Story
The final Taxation Ruling issued on 24 June 2009 concerns the effective life of depreciating assets. This ruling replaced Taxation Ruling TR 2008/4 from July 1, 2009. Determinations of the effective life of certain depreciating assets made by the Commissioner are contained in two tables in the ruling which can be found on the ATO website.
The changes include determinations of effective lives for:
Automotive car washing assets
Soft drink manufacturing assets
Scenic and sightseeing transport ... Read Full Story
Thinking about the types of new fittings and fixtures before installing them may generate you thousands of dollars in depreciation deductions. Make sure you do everything to maximise the cash flow potential of your next renovation project.
Many investors purchase properties that require improvement. They usually do this with the sole purpose of renovating to create equity and generate extra rent.
Once you have decided to renovate your investment property, it is important to ensure you obtain... Read Full Story
What can you do to increase your depreciation deductions?
In order to maximise the tax benefit your investment property will attract, you will require the services of a recognised Quantity Surveyor with specific property tax depreciation skills and experience. To ensure you claim all your entitled depreciation deductions a site inspection will need to be carried out as this will accurately identify all items of plant and equipment. These specific items attract higher depreciation rates than ... Read Full Story
Green teaHas many powerful properties, but more important to help you lose weight quickly is that dieters who consume green tea burn more calories than those who only take caffeine. Green tea also acts as a natural appetite suppressant and can be taken at any time of day. It also has diuretic properties to help you lose water weight instantly.CinnamonIs a delicious spice and it can help to reduce your weight by blocking fat from accumulating in your body, and regulating blood sugar levels. Dr... Read Full Story
When you are desperate to lose weight and you need to make every meal count towards your super fast fat loss, there are certain foods that help you lose weight. This is a list of food substitutions that are easy to follow and won’t make you feel like you are missing out.
All you need to do is replace the high fat, high calorie or high sugar food with a replacement food which is tasty but has lower calories and will help you lose weight quickly.
Have Avocado instead of Mayonnaise or b... Read Full Story
