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NSW land tax crackdown

Property developers, foreign owners, farmers and trusts could be among those hardest hit by a NSW government crackdown on taxpayers who have incorrectly avoided paying land tax. Read more

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Do you Airbnb your property? The ATO has you in its sights

Sharing is caring, right? However, when it comes to the sharing economy, the ATO is feeling neglected and wants its fair share. Here’s what you need to know if you rent out your property on Airbnb. Read more

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Difference between repairs, maintenance and improvements

It’s a common question among new property investors: “What’s the difference between repairs, maintenance and improvements?”

This is important stuff to know if you’re going to invest in property because it affects your tax deductibility and hence your cash flow. Read more

Tax Time Tip’s

We look at some of the key taxation issues that investors may wish to address over the next few weeks. Read more

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Paying Interest in Advance on Investment Property

Now is the time of the year some people consider paying 12 months of interest upfront to claim the tax deduction in this financial year. If you have sold a property and have a capital gain liability, or have come into some money via a bonus or something, paying the interest upfront and claiming the deduction this year can be a good way to reduce the tax bill for the year.

Many lenders will offer a discount on the interest rate for paying in advance, for example Commonwealth Bank have an interest rate of 6.54% for paying 1 year upfront if you are on their professional package. This is less than the discounted variable rate, of course you are taking a risk as to what interest rates will do over the next 12 months.