263 Posts

Rental Properties

Posted on October 13, 2014 by GSCPA Admin

If you are considering purchasing a residential investment property or renting out your main residence, it is important to understand the tax implications of doing so. Some important things to consider include income that must be declared, the 6 year CGT rule, deductible expenses versus capital works and repairs and maintenance expenses.

Income generated from rental related activities which must be declared, include rental bond money that you become entitled to, insurance payouts, letting and booking fees received by you, reimbursement or recoupment for deductible expenditure and any other associated payments you receive including payments in the form of goods and services.

The 6 year CGT rule relates to renting out your main residence. It is now fairly common for people to move out of their main residence on a temporary basis. Whilst your main residence is being rented out you can claim deductions and still be eligible for the Capital Gains Tax exemption when it comes time to sell, as long as your main residence has not been rented out for more than 6 years at any one time. If the 6 years is exceeded you need to apportion the time that the property was classified as a rental property and a main residence and possibly pay tax on any capital gain made.

Expenses are only deductible for the period your property was rented out or available for rent although there is an exception on the following expenditure associated with land on which you have purchased to build a rental property or incurred during renovations to a property you intend to rent out:

  • interest on loans,
  • local council rates,
  • water and sewage rates,
  • land taxes, and
  • emergency services levy.

It is important to remember that once you intention changes, these expenses are no longer deductible.

Confusing capital works expenses as repairs and maintenance is a common mistake. The general rule is that, if repairs or maintenance are carried out on the property in order to restore the fixture or fitting to it’s original state, then this is an outright deductible expense. If the items are completely replaced or restored to a condition beyond its original state, then this is capital works and must be depreciated at a general rate of 2.5% per annum.

If you have any concerns or questions about how to treat potential rental income in expenditure, please do not hesitate to contact our office.

GeersSullivan cooks up a feast for families at Ronald McDonald House

Posted on September 12, 2014 by GSCPA Admin

 

make a meal web photoEvery year the staff here at GeersSullivan put together teams to cook up a feast for families staying at Ronald McDonald House. It has been a tradition with the firm since 2005 and this year was no exception with 3 teams giving up their time to plan a 3 course menu, buy the freshest produce on the day and prepare wonderful home cooked meals for about 30 people.

Ronald McDonald House is a home away from home for the families of seriously sick children who are undergoing treatment at Princess Margaret Hospital. Not having to worry about what is for dinner may seem like a small thing, but it gives the families a chance to concentrate on what is most important – helping their ill children. Families are often uprooted from their normal lives with little warning and can spend weeks or even months many thousands of kilometres from home.

After a few busy hours of peeling, slicing, dicing, frying and baking the first team for his year served up a sensational 3 course meal with options for everyone to enjoy. Emily’s pumpkin soup was delicious and the macaroni cheese lovingly prepared by Piera-Lee was a big hit with not only the kids but the adults as well! We roasted up crumbed mini drumsticks, two legs of lamb and two melt in your mouth scotch fillets served with crispy roast potatoes, cauliflower cheese, corn on the cob, a couple of side vegies and gravy to top it all off!

The kids were very happy with ice cream for their sweets especially when they had lots of yummy choices for their toppings. Ryan impressed with putting together two scrumptious homemade crumbles for the adults who could still fit sweets in!! Apple & rhubarb and apple & berry crumble topped off with lump free custard – very nice!  None of these dishes would have come together with out the help of Jessica and Annie – it was a real team effort and what a wonderful feast it was!

GeersSullivan is proud to have been a major supporter of the Ronald McDonald House and to give a little bit back to those in need is a big part of what defines us as an organisation.

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