Which Depreciation Method?

The tax law allows investors to choose between two methods of claiming depreciation on the fixtures and fittings in an investment property whether residential, commercial or industrial.

These two methods are the diminishing value and the prime cost methods.

Every property investor is likely to have a different investment strategy which also may differ from property to property, so it is important to understand how the choice between the two different methods of claiming depreciation will impact your cash flow.

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Child Care Relief

Like many things in life, the cost of child care continues to grow and grow.

The Federal Government recently announced an overhaul of their planned Paid Parental Leave which will now focus on providing further relief to a family’s child care expense bills.

So far, there is little detail around these changes, so we will  have to wait and see.

However, there are two benefits/rebates available right now that can ease the burden.

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Increasing Interest Claims

We recently received a question from a client regarding the possibility of increasing the amount of interest he wanted to claim as a tax deduction.

The client owns a number of properties including investment properties and his main residence.

All properties had debt associated with their purchase – all properties still have balances owing on these loans.

The question was whether he could refinance the entire debt and switch the security secured against his main residence to one, or all, of his investment properties.

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Did You Know?

Did you know the limits for contributing funds into superannuation increased from 1 July 2014?

No?

Well you’re not alone.

Based upon some of the questions we have received since the Christmas break, there still seems to be a deal of confusion regarding how much a person can contribute to superannuation and claim a tax deduction.

From 1 July 2014, a person aged up to 49 years are able to contribute $30,000 into superannuation and claim it as a tax deduction.

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