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Moore Stephens

Autumn Home Shopping

Finding the perfect property isn’t always easy, and as the colder months approach, the number of homes available for purchase starts to subside. The reduction in house stock can swing the pendulum to favour the seller as buyers fight for the smaller number of properties.

Claiming depreciation on investment property

Rental property investors have access to a range of tax strategies. One such strategy, which is often underutilised, is claiming depreciation as a tax deduction.

Property expenses, such as depreciation and capital works expenditure, can be deducted over a number years, adding to a significant return for property investors come tax time.
 

Be careful using the ATO like a bank overdraft

Individuals and businesses with cash flow difficulties sometimes use the ATO like a bank overdraft. They deliberately don’t pay their taxes on time and whilst they may incur interest in doing so, it allows them to use the monies owing to the ATO for other purposes.

Up until now, the ATO have been very slow at chasing outstanding monies owing to it but this may change. Soon they will be able to disclose tax debt information to credit reporting bureaus which may have serious and inescapable consequences.