New legislation passed yesterday reducing tax deductions on IP's

Discussion in 'Accounting & Tax' started by Erica, 16th Nov, 2017.

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  1. Erica

    Erica Well-Known Member

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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There are a few threads on this alreaDY
     
  3. Depreciator

    Depreciator Well-Known Member

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    Yep, lots of talk about it since May. Given the ALP supported the changes (but didn't think they went far enough), there was never any doubt that they would be passed.
    Scott
     
  4. Mike A

    Mike A Well-Known Member

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    im waiting for the next change to be capping interest deductions on second hand property.

    maybe they even throw in a sweetener to make interest on first home buyers purchasing a PPOR deductible up to a certain limit. I would support such a move to be honest.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I'm looking forward to seeing the new and revised reports the major QS firms are rolling out.

    The more I see the more I'm convicned that all buyers should ensure they ask a good QS for their (free) advice on entitlements so the owners can make an informed choice about a QS report. Frankly I'm not an expert in QS deductions and always defer to likes of BMT, Washington Brown and Depreciator rather than try to guess or do a fullylucky. Nobody should be self preparing depreciation schedules after these budget changes. This will become the norm.... Lots of little issues can be missed. And assuming a report has no value anymore is really foolish too. I would allow a QS to deliver that opinion.

    The message I want to share is that your TAX ADVISER is not a QS expert. Call BMT, Washington Brown and Depreciator for their opinion. They know all the right questions to ask to measure the potential value.

    That said those who self prepare may find themselves at risk of errors when they self prepare tax returns for asset replacements in their properties. A replacement over isnt deductible. The correct rate and methods must be used AND the former asset may be eligible for either a tax write off (deductible), a CGT loss or none of the above.
     
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  6. euro73

    euro73 Well-Known Member Business Member

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    +1 . Flat out crazy not to engage a professional quantity surveyor to prepare a depreciation report
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Not just any. Loads of bit players in this with cheap reports but not quality
     
  8. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yeah. I want a royal commission. Chaired by another ten pound pom who needs to be relected.
     
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