NEW RULES FOR SOME RENTAL PROPERTY DEDUCTIONS

 

The budget has proposed (and they will soon be law) two unusual changes, one impacting any current rental property owner and the other impacting those buying a rental property. Both will apply from 1^st July 2017.

Travel to Inspect: Regardless of where the property is, or what the problem is, you will not be able to claim a tax deduction for travel. An odd one, to say the least.There would be more cost to the revenue from politicians fudging their travel expense than from ordinary investors fudging their travel to their rental property.

Depreciation: This applies to property bought after 9^th May 2017. Unless the property is new i.e. bought from a builder or property developer, then you cannot claim depreciation on all the usual things, such as stoves, carpet, hot water systems etc. (there a huge list). So buying a new property will provide a better tax benefit over one which is used, whether it be one year old or twenty years old. Again, an odd one. 

 

 

** But none of this applies to properties owned and rented before 9^th May 2017 **

 

NOTE: The information above is, of necessity, general in nature. It should not be relied upon. For more targeted advice, please contact our office or your super/finance consultant or ASK us to direct you to one of our network of experts.