help taxation

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From: Linda Schmidt


could someone please assist me in understanding the complexities of the taxation system and the deductions.
1. Is mortgage insurance not 100% deductible in the first year?
2. is this same rule applicable to the stamp duty on the mortgage and search fee.
3. I am told that I can only claim this over a five year period.

What do I do to get the withholding tax deducted? I have applied for another house and the deal is almost completed. That gives me two houses at 140 and 160 per week each. then I have looked at another which is double the price but also is $220 per week rental. there is an awful lot of questions and it appears a lot of different ways different accountants look at these questions or interpret them. If someone could reply that would be good as I have not even put in my application for withholding tax and I desperately need to. thanks linda schmidt
 
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Reply: 1
From: The Wife


HI Linda,

There are some very good people on the forum who can answer your Questions on tax. But they probably dont visit this section very often. Try posting your questions in the "Property Investor Forum" , You will get a lot more responses.

Cheers, TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2
From: Webmaster (Somersoft)


Under Australian tax law, borrowing costs can be written off as a tax deduction over the term of the loan or five years, whichever is the sooner. Mortgage insurance, mortgage stamp duty and possibly search fees come under this category.
 
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Reply: 2.1
From: RM .


Webmaster (Ian),

Can you also tell me if your PIA software qualifies for and is subject to the same rule, of being able to depreciate finance costs such as those mentioned in the previous post, over a 5 year or shorter period of time?

Appreciate your answer in advance.

Thanks RM.
 
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Reply: 2.1.1
From: Webmaster (Somersoft)


According to the 2001/2002 Summary of the Taxpayers Australia Inc. (see www.taxpayer.com.au), the general rule for claiming deductions for software used to help derive assessable income (e.g. rental income)is that it can be written off over 2.5 years at 40% p.a. However, for such software that costs less than $300 (e.g. PIA Personal at $140 and PIA Personal Professional at $245), a full deduction is allowed in the year of purchase. I recommend that you cross-check your specific situation with your accountant or with the ATO (www.ato.gov.au).
 
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