End of financial year tax time!

Discussion in 'Accounting and Tax' started by popo7, 14th Jun, 2015.

  1. popo7

    popo7 Member

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    Hi guys,

    I just recently purchased a property and the settlement date is on 14/7/15. Would it be better to have the settlement date before end of financial year (30/6/15)? Would there be any tax benefits if say the settlement date was moved to 25/6/15???

    Would appreciate your advice!

    Kind regards,
    Jo
     
  2. Terry_w

    Terry_w Member

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    Might save you accounting fees if you don't need to claim anything in this financial year.

    It may also save you land tax depending on the state.
     
  3. INVSTOR

    INVSTOR O+

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    True! WA land tax is calculated on 30th June.
     
  4. popo7

    popo7 Member

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    thanks for the reply. So would there be other tax benefits of having the settlement date at 25/6/15?

    Is it possible to claim the full amount of buyers agent fee of $15,000? Or is this only claimed when selling the property?
     
  5. depreciator

    depreciator Member

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    If the property is available to let this year, there will be depreciation to claim.

    Assets. Allied under $300 can be written-off and those between $300 and $1,000 can go into the Low Value Pool - 18.70% for just a few days.

    The building, if eligible, will be treated pro-rata, so perhaps not much there.

    All will depend upon the age of the place and what is in it.

    Scott
     
  6. Terry_w

    Terry_w Member

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    Buyers agent fees are not deductible. It may come off the capital gains when sold.

    As Scott says if you have 4 or 5 days to claim this probably won't amount to much - e.g. $10k in depreciation may work out to be $137 for 5 days.
     
  7. depreciator

    depreciator Member

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    There won't be much to claim on the building (if eligible) but as I said there could be good depreciation on the Assets because of the under $300 write-off and the Low Value Pool. If it's a new property, there could be $2,000 or so for those few days.
     
  8. tj22

    tj22 Member

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    i'm settling on a property 29/6/15 but i don't really want to have to go and pay a account an extra 100-300 dollars (it's an old property)

    can i just do a tax return for my self and do the property next year?
     
  9. popo7

    popo7 Member

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    Thanks guys for the reply I guess it's no point in settling just before tax time.

    If you don't claim now then you miss out it wouldn't be too much..
     
  10. marty998

    marty998 Member

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    If it's a negatively geared property (after depn & tax) why wouldn't you agree to as long as possible settlement period?
     
  11. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    Its barely available for rent and the deductions really just trivial. I would wait.