Archives for July 2014

7 Tips to make the Most of Your Commercial Property at Tax Time!

Taxtime

SEVERAL PEOPLE have asked how to pay less tax on on their investment properties. Therefore, we’ve put together a list of our best 7 tips to help you save money at tax time.

1. Loan Interest

While a property is rented, available for rent or in the process of being built for rent, loan interest is tax deductible?– even if it is still at planning stage.

This includes the interest you pay on money you use to purchase or improve the property. [Read more…]

Prime Cost or Diminishing Value … for Commercial Property?

Senior man being puzzled with tax documents

THE AUSTRALIAN Taxation Office (ATO) allows investors to choose between two alternative methods of claiming depreciation on plant and equipment assets. The diminishing value and the prime cost methods of depreciation.

When you make a depreciation claim, you can only choose one of these methods. It is important for you to understand how your choice will affect your investment returns. [Read more…]

Understanding Commercial Property Yields Overall

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OfficeSkyline

WHENEVER YOU CONSIDER Commercial property, it’s important to fully understand what the overall Yield is likely to be.

And the simple formula to arrive at an estimated overall figure is:

Yield = Income + Capital Growth

And investors often ask me … How do average Yields vary from one sector of the Commercial property market to the other. [Read more…]

Commercial Property Owners: Your Complete Depreciation Checklist

Mature couple doing family finances

THE END OF FINANCIAL YEAR may have come and gone but there is still time for commercial property owners to arrange a tax depreciation schedule. You could claim thousands of dollars in depreciation deductions.

Australian Taxation Office (ATO) legislation permits the owner of any income-producing property to claim depreciation in two ways:

  1. Capital works deductions
  2. Depreciation for plant and equipment assets [Read more…]

FIRB Approval for Commercial Property

FIRB-approval

YOU SHOULD BE CAUTIOUS when entering into negotiations with foreign purchasers for the sale of property, due to the restrictions imposed by the Foreign Investment Review Board (“FIRB”).

Vendors should ensure that the contract of sale protects them when approval is required by the FIRB. Because, if the purchaser fails to gain approval, the FIRB can reverse the transaction. [Read more…]