Posts Tagged ‘Auditing’

Taxation – What Can a Property Investor Legally Claim

November 23rd, 2022

What and What not to Claim

The Australian Tax office (A T O) lists about 25 key areas in which rental expenses can be claimed.

What you can Claim:

- Advertising for Tenants
- Bank Charges
- Body Corporate Fees
- Borrowing Expenses
- Cleaning
- Council Rates
- Gardening and Lawn Mowing
- Insurance
- Interest on Loans
- Land Tax
- Legal Expenses
- Pest Control
- Property Management Fees Commissions
- Quantity Surveyor’s Fees
- Repairs and Maintenance
- Secretarial and Bookkeeping Fees
- Security Patrol Fees
- Servicing Costs (IE: servicing a hot water system etc)
- Telephone calls and rental
- Tax-related expenses
- Travel and car expenses (rent collection, inspection of the property, maintenance of the property etc)

(You can claim a deduction for these expenses only if you actually incur them.

What you cannot Claim:

The ATO lists some of the following expenses for which you are not able to claim deductions:

- The acquisition and disposal costs of the property (these costs include the purchase cost of the property, conveyancing costs, advertising expenses and stamp duty on the transfer of the property)
- Expenses not actually incurred by you, such as water or electricity charges borne by your tenants
- Expenses that are not related to the rental of a property, such as expenses connected to your own use of a holiday home that you rent out for part of the year.

Principles of Residence As They Apply to Taxation Law

April 13th, 2022

An individual is an Australian resident if he or she resides in Australia under the primary ordinary concepts of the test of residence or satisfies one of three statutory residence test. Residents in the primary sense is quite different from domicile, nationality and citizenship. Whether a person resides in Australia is essentially a question of fact and degree and there is no one rule which will determine issue in every case. The dictionary definition of reside is have one settled the blow, dwell permanently or for a reasonable considerable time leave in awe at a particular place. It is not necessary through person to reside in a particular structure such as a house. Whilst physical presence alone may be insufficient evidence of residence, it does seem to be a prerequisite to a finding of residence in a particular place.

A person may be resident in more than one place. An individual may be held to be resident Australia, even though living permanently abroad, if individual visits Australia for part of the year as part of the regular order of his or her life. Conversely a sailor, for example, would arisen in Australia if you she maintains a family home in Australia which the sailor spends time whilst in Australia, even though absent from the country to most of the year. Members of the defenceless is serving abroad retain their residency but may also be held to reside in the country in which they are serving. A person need not intend to remain permanently in place to be found to reside there but it seems that where the duration of the state is not decisive, the circumstances under which a person moved to that location should be considered.