“Improvement” repairs made by investment property owners often draw the attention of the ATO. Usually investment properties have improvements done shortly after the initial purchase. This is usually referred to as “initial repairs” when it comes to discussing tax liability on such repairs.
Funds and investment related to rental properties may be opportunities for you to reduce your tax liability, whether the investment comes from a new or existing loan, a split or linked loan, or an offset loan. This article provides information about rules and flexibility within each loan, as well as some useful tips for calculating tax liability.
Starting a business is a major undertaking, and everyone involved in such a venture need all the help they can get, including from a tax perspective. Fortunately, there are several avenues available. Taxpayers who are setting up a business or raising finances for one have historically been able to claim a tax deduction on the costs associated with starting it, including the following scenarios:
Sometimes, the line between a genuine business and a hobby can be quite blurry. And so there are many occasions in which it’s difficult to determine whether or not a taxpayer is in business or just making some profit while enjoying their hobby. The taxpayer may think this is fine, but the ATO considers this to be an ongoing problem, and from a tax accountant’s point of view, the distinction between the two can be extremely important.
