As June 30 looms nearer and nearer and the tax man starts to come calling, it’s time to make your accountant work a little harder. Particularly around your home and building expenses…
Building or renovating can be expensive but for most people, it is well worth the cost. Nonetheless, wouldn’t it be all the sweeter if you could get that new kitchen on the beaurocrat dollar instead of your own?
According to the ATO’s website (straight from the collector’s mouth), if you own a rental property, you may be eligible to claim a deduction for specific renovations. And they aren’t small jobs either! Things like:
- Extensions (like that garage you know your tenants want)
- Kitchen or bathroom makeovers (because nowhere needs a spot of love like a bathroom after tenants!)
- And other structural additions like fences, retaining walls, etc.
Well unlike a lot of other expenses you generally have around 40 years to claim. Don’t get too excited too quick, like everything the tax man touches: there’s fine print! You’re going to need to be diligent with all your record keeping. For the specifics, you should speak with your accountant, but suffice it to say there’s nothing that a thoughtful landlord wouldn’t already have in their files.
The perks for owner occupiers come a little later on when you are looking to sell, as you normally aren’t eligible for upfront deductions.
If you make improvements on land adjacent to your dwelling, they’re exempt from capital gains tax – a great little bonus if you decide to add a new carport before you list the property.
In the same vein, you are also not liable for GST.
Additionally, It could be well-worth speaking to your financial advisor around what is claimable should you run a home office.
Plans for renovations,
plans for new homes,
plans for extensions;
we’ve got it all. But wait! There’s more!