From 1 July 2017, travel expenses relating to a residential rental property are generally: n not deductible, and n not recognised in the cost base or reduced cost base of the property for CGT purposes. Travel expenses are the costs of travel, accommodation and meals, to inspect, maintain or collect rent for the property.
You can continue to deduct travel expenses relating to your residential rental property if: n you are using the property in carrying on a business (including a rental property business), or n you are an excluded entity.
CHANGES TO DEDUCTIONS FOR DECLINE IN VALUE OF SECOND-HAND DEPRECIATING ASSETS
From 1 July 2017, there are new rules for deductions for decline in value of certain second-hand depreciating assets in your residential rental property. If you use these assets to produce rental income from your residential rental property, you cannot claim a deduction for their decline in value unless you are using the property in carrying on a business (including a rental property business), or you are an excluded entity. This change generally applies to the depreciating assets that you: n entered into a contract to acquire, or otherwise acquired, from 7.30 pm on 9 May 2017, or n used, or had installed ready for use, for any private purpose in 2016–17 or earlier, for which you were not entitled to a deduction for a decline in value in 2016–17 (for example, depreciating assets in a property that was your home in 2016–17 that you turned into your residential rental property in 2017–18). There are no changes to the rules about deductions for decline in value of new depreciating assets in your residential rental property. There are no changes to the rules about deductions for decline in value of depreciating assets in your residential rental property that you installed or used for a taxable purpose other than the purpose of deriving rental income.
If you'd like to speak to your Accountant, call Uplift Accounting in Mulgrave on 03 8510 7527 to schedule an appointment or submit your enquiry via our contact us form.
Established in 2013, we're a team of accountants, bookkeepers, mortgage brokers and business advisors with our office in Mulgrave. At Uplift Accounting, we are here to assist you with all of yourTax, Accounting, Bookkeeping, Audit and Mortgage needs. We proudly make visits to our clients living in Mulgrave and Monash region including Mount Waverley, Glen Waverley, Rowville, Nitting Hill, Clayton, Springvale, Noble Park, Dandenong and Chadstone plus all other surrounding suburbs. Operating from Monash Enterprise Centre in Mulgrave, equipped with latest collaboration technologies, we're able to provide best value for money to our valued clients.
Small business issues we address:
Business Structuring - We advice you in deciding the right business structure for your specific circumstances when starting up your business. We can assess whether you're in the right structure for your business and guide you through the process of restructuring.
Compliance - We help you to work ON your business, streamline your processes and improve your day-to-day efficiencies. Our certified bookkeepers and qualified accountants can take care of all your bookkeeping, payroll, and admin tasks.
Tax Planning - Our tax planning session (usually conducted in Apr-May each year) will help you to save on tax legitimately. Remember, you will need to execute the tax plan recommendations to reap the benefits.
Statutory Financials & Tax Returns - We help you remain compliant with your tax obligations and get the most from your annual return.
Benchmark reporting - We can provide you with informative benchmarking reports that enable you to see how your business compares to your competitors, understand more about how the rest of your industry works and analyse the key performance indicators in your industry
Management reporting - We can create relevant management reports so that you can make better decisions from right information at the right time.
Value add-ons - We advise our clients what value add-ons are right for your business and how choosing the right add-on can help you improve your business productivity and efficiencies. If required, we're happy to conduct relevant research and help you with integrations.
We are located in Mulgrave, Victoria, but we cater for small to medium businesses right across Australia thanks to modern technology and cloud based accounting.