Time to get on top of property

May 01 2017 by Vogue Financial

It’s nearly tax time

Tax time is on the way with June 30th not far off so now is the time to get your property affairs in order.

The ATO offers a multitude of helpful tools and resources to ensure that provide you with accurate and clear information regarding your investments. A good place to start to understand what you can claim is here.

Rental expenses

If you don’t have time to read through the ATO website there are a few things you need to be aware of. In general you;

  • Cannot claim deductions – such as expenses not actually incurred by you, such as water or electricity usage charges borne by tenants
  • Can claim immediate deductions in the income year you incur the expense – such as advertising, council rates, agent’s commission
  • Can claim capital expenditure over a number of years – such as borrowing costs or depreciating assets over $300

It is always best to confirm with your tax agent how he is treating your expenses.

Keeping good records

You should keep records of both income and expenses relating to your rental property.

Records of rental expenses must be in English, or be readily translatable into English, and include:

  • Name of the supplier
  • Amount of the expense
  • Nature of the goods or services
  • Date the expense was incurred
  • Date of the document

If the document does not show the payment date you can use independent evidence, such as a bank statement, or your monthly rental statement to show the date the expense was incurred.

You must keep records of your rental income and expenses for 5 (five) years from 31 October or, if you lodge later, for 5 (five) years from the date that you lodge your tax return.

At Vogue Property, we keep your records on file for easy access so if you need anything don’t hesitate to ask.

Strata Property – who is responsible for the repair?

In property management we are always being asked whose repair is it? Is strata responsible for it or the lot owner?

The owners corporation is responsible for the repair and maintenance of common property. Common Property is defined in the Strata Schemes Act 1973 as ‘so much of the parcel as from time to time that is not comprised in any lot’.

Generally speaking, in most strata schemes, the lot (or apartment) owner owns the airspace and everything in it within the boundary of the unit. They don’t own the main structure of the building. Therefore, an owner is responsible for any repair within their apartment. Where things get tricky is when an Owner’s corporation (or Strata) repair overlaps an owner’s repair.

For example, a water leak from an upstairs apartment into your apartment. Strata is responsible for the fixing the leak but they are not responsible for the damage to the paintwork. The paintwork is deemed to be within the airspace of the lot and would therefore be the owner’s responsibility or would be covered by homeowner’s insurance.

In these cases, we would always check with the individual strata manager and the strata plan.

Do you need some advice?

Whether or not we are currently managing your property we are always available to give some helpful advice, or provide the name of a reputable tradesman.

Contact Janine on  0409 848 074.

 

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