New Rules on Investment Property Deductions
Mar 23rd 2004, 8:32 pm
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New Rules on Investment Property Deductions
http://www.smh.com.au/articles/2004/...939646743.html
Investors facing tax crunch
By John Garnaut
March 24, 2004
Property investors face tighter deduction rules when filing their next tax returns in what may be a backdoor step towards reining in the overheated property market.
The Australian Tax Office said it would release new guidelines within six weeks on deductions landlords can claim for depreciating housing assets, such as lighting, air conditioning and even vacuum cleaning systems.
Depreciation is believed to account for the second largest chunk of the $13.2 billion claimed in rental deductions by 1.3 million taxpayers last year, trailing only deductions for interest payments.
Claims tend to be greater for investment apartments than free-standing houses because of equipment such as elevators and security systems. "It would be a real concern if this is a backdoor way of trying to reduce tax deductions for rental investment property," said Ron Silverberg, managing director of the Housing Industry Association.
Investors facing tax crunch
By John Garnaut
March 24, 2004
Property investors face tighter deduction rules when filing their next tax returns in what may be a backdoor step towards reining in the overheated property market.
The Australian Tax Office said it would release new guidelines within six weeks on deductions landlords can claim for depreciating housing assets, such as lighting, air conditioning and even vacuum cleaning systems.
Depreciation is believed to account for the second largest chunk of the $13.2 billion claimed in rental deductions by 1.3 million taxpayers last year, trailing only deductions for interest payments.
Claims tend to be greater for investment apartments than free-standing houses because of equipment such as elevators and security systems. "It would be a real concern if this is a backdoor way of trying to reduce tax deductions for rental investment property," said Ron Silverberg, managing director of the Housing Industry Association.
