Can you still claim tax deductions if +ve geared?

[WebBoard]

From: Funky Whuff


Hi all,
just another quick question, about tax this time... if i have a property for example, that is lease-optioned and is positively geared, can i still claim depreciation etc on my tax return against my assessable rent income...?
Liz

 

[paulzag]

Reply: 1
From: Paul Zagoridis


Hi Liz

Expenses incurred in earning income are deductible (against all income in this country).

Paul Zagoridis
Dreamspinner

 

[Investment_Inst]

Reply: 2
From: Nigel Kibel


Liz,

If you have lease optioned a property, you do not own it until you actually pay for it. On this basis, the depreciation claim you would not be entitled to make until you have actually settled on the property.

Nigel Kibel
The Investment Institute

 

[WebBoard]

Reply: 2.1
From: Funky Whuff


But Nigel, if you are renting the property out and receiving rental income, even if you do not own the property you can still claim most benefits is that correct? Why not depreciation - do you have to own the building?
Liz

 

[WebBoard]

Reply: 2.1.1
From: Sergey Golovin


Liz,

You probably have to be clear which part or what is yours and what is someone else's.

If it is belongs to you and properly registered and documented then yes you will get all sorts of deductions.

If it is belongs to someone else's and you are just renting and sub renting - you only can claim what's yours. Such as - lawn mover, furniture, etc. Again if all those things do belong to you and you can convince tax department that you are running an IP or business. But how are you going to convince them that property or other items belongs to you, if it does not?

Would be totally different ball game if it does or at least some part of it.

Serge G.