Latest News

Hot Issues
spacer
COVID-19 resources -Update July 2020
spacer
JobKeeper Phase 2 - The Next Step
spacer
Payroll Tax 2020 concessions and JobKeeper
spacer
Work Related expenses – 2020
spacer
‘Everyone is now on notice’: ATO acquires COVID-19 data on 3m Aussies
spacer
Extra Tools & Resources for our clients.
spacer
Year End Tax Deductions – “equipment”
spacer
Home Office Claims 2020
spacer
Early release of super sees ‘high take-up’
spacer
Tax time 2020: ATO homes in on rental deduction claims
spacer
ATO announces Div 7A COVID-19 assistance
spacer
‘HomeBuilder’ grants now available.
spacer
$150k instant asset write-off extended for 6 months
spacer
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
JobKeeper documentation ‘absolutely critical’ in ATO audit
spacer
ATO updates JobKeeper compliance approach
spacer
COVID-19 hotspots - tax time 2020
spacer
Tax reform to feature heavily in PM’s JobMaker plan
spacer
Jobkeeper Fraud warning
spacer
ATO extends initial JobKeeper payment deadline
spacer
Boosting cash flow - ATO
spacer
Our website, your resources
spacer
ATO releases JobKeeper alternative test
spacer
Temporary Working from Home Expenses Rule
spacer
Minimum Pensions Halved – 2020 & 2021
spacer
More coronavirus support for landlords, commercial tenants
Article archive
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 1 of, 2017 archive
spacer
Impending GST changes good news for SMEs
spacer
SMSF related-party borrowing arrangements
spacer
Primary Producer Income Tax Averaging
spacer
Active vs passive assets and the small business CGT concession
spacer
ATO issues further taxpayer alerts on key focus areas
spacer
Borrowed money to pay a business tax debt? Is the interest deductible?
spacer
Online Selling
spacer
The dangers of income splitting
spacer
Clients failing on depreciation front - property investment
spacer
Home office deductions: What substantiation will the ATO accept?
spacer
ATO advises accountants on client data swoop
spacer
ATO issues stern reminder on new backpacker tax
spacer
Debt Recovery
spacer
Government takes next step in tax cheats crackdown
spacer
Car salary packages and the deductibility of after-tax running costs
spacer
Choosing an Executor
spacer
ATO fires warning shots at cash economy exploiters
spacer
Getting a tax valuation from the ATO
spacer
5 tips to get home office deductions right
Clients failing on depreciation front - property investment

Several tax specialists and national mid-tiers have found clients are struggling to understand their rights and benefits associated with depreciation, ...

... and accountants are being told to proactively engage with clients on the matter to avoid unwanted consequences at end of financial year. 

 

       

Bentleys Sunshine Coast managing director Peta Grenfell told Accountants Daily that accountants should actively educate clients with an interest in property investment about depreciation. 

“Clients usually understand there are tax benefits associated with owning a rental property, but they tend not to understand what they need to do to access the benefits, or how they work,” Ms Grenfell said.

“I think it comes down to the relationship the client has with their accountant. The more proactive the accountant is in helping the client to maximise their deduction and understand their investment the more likely we are to see an increase in understanding.”

In an interview with Accountants Daily, Pitcher Partners' David Staples said that accountants who don’t encourage communication and understanding early can end up creating more work for themselves and their clients in the long run.

“The most critical thing is for people to actually talk in advance,” Mr Staples said.

“I say to people if you don’t talk to us before you do it we can't help you and then it's a bit late after you've bought the property to tell your accountant 'oh we've bought this property' and then you try to get depreciation or capital works schedules out of people.”

Mr Staples said that record keeping is the most important aspect to save both accountants and clients time when it comes to doing tax returns.

“One of the things accountants can actually do is help people set up ways of tracking and keeping proper records because it's hard a year and a half after you've bought the property to come and do your tax return and say where's all this information,” he said.

BMT CEO Bradley Beer said there are five key mistakes that investors commonly make which accountants should work to educate them on.

The first mistake many investors make is not claiming all the legitimate items they are allowed to depreciate.

The second is investors believing that their properties are too old to hold any deductions, when a property’s age doesn’t necessarily rule out all deductions completely.

Thirdly investors who renovate their properties are often not aware of scrapping deductions available for the assets they remove and replace.

The fourth common mistake is investors believing that because they purchased their investment property some time ago that they cannot benefit from tax depreciation or items that may have been missed in a previous claim.

Lastly, many investors attempt to do their own tax claim and miss things out.

 

LARA BULLOCK
Wednesday, 18 January 2017
accountantsdaily.com.au

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922