Tax time reminders and an important message for overseas investors
With no warning they’ve introduced changes to our capital gains tax rules and the 50% reduction in assessable gain will no longer apply to non-resident property owners. Importantly you can apply the discount based on the value as at May 8th 2012, so please discuss this with your Australian accountant asap. It might be best to get a registered valuer out to your property now, and lock in your ‘protected’ gains.
And for all investors we think it’s worth a reminder that the depreciation allowances on your property can add up to a substantial tax deduction. So if you haven’t got a professionally prepared schedule you may be underclaiming – and apartment owners often forget that as a part-owner of all their common property such as lifts, pools, gyms etc etc, you are entitled to depreciate this in your claims. Annual deductions over $10,000 are common.
We understand there can be options to adjust previous years’ tax returns too, so the fee to have a depreciation schedule prepared might be a good investment.
And as always, please talk to your accountant for up to the minute advice.