{"id":5414,"date":"2017-03-22T09:00:08","date_gmt":"2017-03-21T22:00:08","guid":{"rendered":"http:\/\/www.trc-gorod.ru\/?p=5414"},"modified":"2020-05-25T11:14:20","modified_gmt":"2020-05-25T01:14:20","slug":"10-common-tax-mistakes-made-property-investors","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/10-common-tax-mistakes-made-property-investors\/","title":{"rendered":"10 Common Tax Mistakes Made by Property Investors"},"content":{"rendered":"
[et_pb_section bb_built=”1″ admin_label=”Section_2_Text Left:” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”#f7f7f7″ allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”Row” make_fullwidth=”off” use_custom_width=”on” width_unit=”on” use_custom_gutter=”off” padding_mobile=”on” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” parallax_2=”off” parallax_method_2=”off” column_padding_mobile=”off” custom_width_px=”768px” custom_padding_last_edited=”on|phone” background_color=”#ffffff” custom_padding=”60px|60px|60px|60px” custom_padding_phone=”40px|20px|40px|20px”][et_pb_column type=”4_4″][et_pb_post_title admin_label=”10 Common Tax Mistakes Made by Property Investors” title=”on” meta=”on” author=”on” date=”on” categories=”off” comments=”off” featured_image=”on” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”dark” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” disabled_on=”off|off|off” disabled=”off” custom_margin=”||40px|” title_font_size=”36″ title_font_size_phone=”28″ title_font_size_last_edited=”on|phone” title_text_color=”#00afff” meta_text_color=”#95989a” title_font_size_tablet=”36″ title_letter_spacing=”0″ title_letter_spacing_tablet=”0″ title_letter_spacing_phone=”0″ title_line_height=”1″ title_line_height_tablet=”1″ title_line_height_phone=”1″ meta_letter_spacing=”0″ meta_letter_spacing_tablet=”0″ meta_letter_spacing_phone=”0″ meta_line_height=”1″ meta_line_height_tablet=”1″ meta_line_height_phone=”1″ border_width=”1″] [\/et_pb_post_title][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n
Property investing is a tried and true means of wealth building that delivers benefits to investors in terms of capital growth and tax reduction.<\/span><\/p>\n While we have no real control over investment property gains we do have control over what we claim on our taxes.<\/span><\/p>\n Unfortunately, many property investors either leave millions of dollars on the table that could have been used to grow their portfolios or they make erroneous deductions from a misunderstanding of tax law.<\/span><\/p>\n Are you making any of the 10 common tax mistakes?<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n You\u2019d be surprised at just what the ATO allows you to claim.<\/span><\/p>\n Installed new smoke alarms or security systems lately? What about garbage bins? <\/span><\/p>\n Fixtures and fittings valued at less than $300 can be claimed within the first financial year.<\/span><\/p>\n Have you claimed everything you\u2019re entitled to claim?<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n Don\u2019t automatically assume that your older investment property doesn\u2019t have some depreciation in it left to claim.<\/span><\/p>\n While your investment property must have been built after 1987 to claim capital credits for structural elements (e.g. ceilings, floors, walls, etc.) it\u2019s still possible to claim deductions for renovations completed after 1987, even if they were done by a prior owner.<\/span><\/p>\n Plant and equipment assets like hot water systems, stoves, carpets, etc. are deductible and should definitely be claimed.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n Items that have been scrapped after renovating as well as the items that are replaced can be deducted.<\/span><\/p>\n For example, if you discard tile and replace it with new tile or hardwood, the value of both the new and the old can be deducted.<\/span><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/03\/shutterstock_174993257.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=” Missing deductions after renovations” border_width=”1″] [\/et_pb_image][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n There\u2019s a lot to consider when pulling together all of your tax information…it doesn\u2019t hurt to have another look once you\u2019ve filed. <\/span><\/p>\n If you\u2019ve discovered that you missed claiming something, that doesn\u2019t mean you\u2019re out the claim as the ATO allows you to make adjustments to your two previous tax returns.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n Improvements to the land, including structural improvements are deductible but not the cost of the land purchase itself.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n If you\u2019re a DIY kind of person you probably do a lot of work yourself when you refurbish an investment property. <\/span><\/p>\n While you can save a lot of money this way, the fact is that your time and effort are not allowable deductions because you didn\u2019t actually incur a cost.<\/span><\/p>\n Obviously the materials you purchased to complete the job are tax deductible, however your sweat equity is not.<\/span><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/03\/shutterstock_314289131.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”DIY renovation” border_width=”1″] [\/et_pb_image][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n If you\u2019ve taken out a home loan to buy both an investment property and a new car, you\u2019re not allowed to claim a deduction for interest paid on the personal part of the loan.<\/span><\/p>\n As you can imagine, this scenario can send up a red flag for the ATO to audit, hence the reason it\u2019s always smart to keep your investment property loans separate from your personal. <\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n While it is permissible to claim travel costs to visit your investment property(ies) it\u2019s not possible to claim then in connection with a personal vacation.<\/span><\/p>\n In other words, only the costs incurred that are directly related to visiting your investment property are deductible.<\/span><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/03\/shutterstock_560099452.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”Travel expenses” border_width=”1″] [\/et_pb_image][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n If you rent out an investment property that you also use personally (e.g. a holiday home) you cannot claim rental expenses for the time that you are using it yourself.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all” header_font_size=”30″ header_font_size_tablet=”30″ header_font_size_phone=”30″ header_letter_spacing=”0″ header_letter_spacing_tablet=”0″ header_letter_spacing_phone=”0″ header_line_height=”1″ header_line_height_tablet=”1″ header_line_height_phone=”1″ text_letter_spacing=”0″ text_letter_spacing_tablet=”0″ text_letter_spacing_phone=”0″ text_line_height=”1.7″ text_line_height_tablet=”1.7″ text_line_height_phone=”1.7″ border_width=”1″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font_size=”30″ header_letter_spacing=”0″ header_line_height=”1″ text_letter_spacing=”0″ text_line_height=”1.7″ border_width=”1″]<\/p>\n Without question the tax structure can be complex. There are so many possible deductions, especially for property investors it\u2019s not hard to miss one or more of them.<\/span><\/p>\n Why run the risk of losing out on potential gains that you can use towards your wealth building efforts? Enlist the services of a tax professional who is well versed in tax law surrounding investment property and preferably, who is an investor him or herself.<\/span><\/p>\n <\/p>\n <\/p>\n If you want to meet with like-minded people sharing the same interest for property investment, \u00a0you should register to attend our next Property Investor Night.<\/strong>1. Not claiming enough<\/span><\/h3>\n
2. Believing your property is too old<\/span><\/h3>\n
3. Missing deductions after renovations<\/span><\/h3>\n
4. Believing that once a return is lodged it\u2019s gone<\/span><\/h3>\n
5.<\/span> Claiming the purchase cost of the land in a construction investment<\/span><\/h3>\n
6.<\/span> Claiming costs where there were none<\/span><\/h3>\n
7.<\/span> Interest mistakes<\/span><\/h3>\n
8.<\/span> Travel expenses<\/span><\/h3>\n
9.<\/span> Allocation of rental expenses<\/span><\/h3>\n
10. Tax return preparation<\/span><\/h3>\n
\nAt these FREE events held all across the country we discuss where the growth markets are right now, and share ways you can navigate your way to financial freedom through investing in property.<\/strong><\/p>\n