Have a bit of a dodgy tax question to ask,
Say if i get paid $200 a week in rent- it gets sent to my real rental estate trust account, then they pay me at the end of 2 weeks. If i ask them to not pay me till after the financial year- do i need to declare it in this year's income?
Technically the details they sent me is "rent arrears received on 24/05/2019 and then transferred to your bank account on 30/06/2019.
Which date is relevant? It's techinically when i get paid isnt it?
answer my question.. cheers
Also i've also edited my question -one extra question thanks
The relevant dates are 01/07/2018 to 30/06/2019. It is when you (or your real estate agent) receives income within that period.
Perhaps now is the time to do maintenance on the property, if you are expecting your total income (lower tax bracket) in next financial year is going to be lower.
So your 'dodgy' question is to 'dodge' $200 of taxable income in Year 1 only to have it added on in Year 2 with a chance it may push you into a higher bracket?
That's Gangsta.
Maybe it's a dodgy ad by Labor to increase taxes!1!!
If i ask them to not pay me till after the financial year- do i need to declare it in this year's income?
Do they report their commission this year, because the received the rent from the tenant or next year when they transfer funds to you? What if they lie for you and the ATO match records and ping them?
My recollection is the relevant date is when it is first applied to your benefit.
In this case if they are holding it pursuant to your instructions then I would suggest the relevant date is the date of receipt by the agent.
But its been a long time since I did tax law.
I was thinking of doing renovations myself so i cant claim on labor costs, but was going to buy gascooktop, oven, tiles, etc- are these claim whole value or off depreciation?
These are long-life assets need to be depreciated. Based on the questions you've had, I'd really recommend talking to a tax preparer ASAP. There's a ton to learn and it's not easy. (small upside: advice is an expense and is tax deductible against the income from the property)
I think enigma48 is correct. You need to get some tax advice from a professional.
Actually, you should have done that before you became a landlord.
yeah i sort of did, but this is the 1st time making renovations-
i already have a depreciation schedule but if i make renovations would i need to buy a new depreciation schedule- it'll be annoying because it costs few hundred dollars and if i sell in 2-3 years it prob wont be worth it.
No, there's no need to buy a new depreciation report, if you look at your depreciation report/schedule presumably BMT, etc.
There are two depreciation categories : Div 40 and Div 43 ; looks like plenty of reading material
Look specifically to page 27 & 28 re 2.5% capital works deductions and page 38 of : https://www.ato.gov.au/uploadedFiles/Content/IND/downloads/R… for depreciating assets which draws effective life from : https://www.ato.gov.au/Business/Depreciation-and-capital-exp… go to the latest TR 2018/4 Income tax: effective life of depreciating assets and grab the PDF.
yes il be studying next year thats why i want to get paid after this financial year
even things like paying for landlord insurance not in october but now would be useful, etc so i can claim it this year's tax—not sure what others
Assuming the rent is ~$1k/week, we are only talking $2k of income shifting. Assuming you are in the $90k-$180k bracket that only $740 compared to whatever you marginal rate is next year. Is it real worth the trouble?
Bring forward as many expenses as you can, prepay interest, buy the cooktop now, the tax dept aint gonna worry over $200
prepay interest? do banks allow that?
Some do.
A decent tax agent should be able to give advice on these things and their fee is deductable!
Usually a the Real Estate agent will provide a statement at the end of the financial year.