Press Releases
 
Part-Year Rentals Affect Property Investors Tax Claims Says Matthew Mousa from TLK Partners

Tax rental income statements record every dollar received on investment properties, but it doesn’t reflect how many dollars an investor actually takes home, says TLK Partners property expert Matthew Mousa.



Australia

, 21 March 2019
--

Part-Year Rentals Affect Property Investors Tax Claims Says Matthew Mousa from TLK Partners



Part-Year Rentals Affect Property Investors Tax Claims Says TLK Partners Expert Matthew Mousa Tax rental income statements record every dollar received on investment properties, but it doesn’t reflect how many dollars an investor actually takes home. Rental property investors, will have had to settle a lot of bills in order to receive the dollar bills listed as income - without doing so, they would have received a lot less. But what happens if an investment property is only rented out for part of the year? TLK Partners’ propertyspecialist, Mr Matthew Mousa, looks at the tax implications. Sam and Jane were looking for tenants, but made it way too difficult for anyone to rent their property. They asked for references even for short term tenants, and barred children and pets. And they also demanded final approval, despite advertising their premises through an agent. To top it all, not one prospective tenant earned that approval. In Steven and Sally’s case, they advertised their “rental” through an agent, but restricted it to being only available outside school holidays, when there was no demand for renting a property in a remote location with difficult access. They also had no tenants during that year. Both couples had their expenses claims rejected immediately by the tax office. “If the Australian Tax Office has cause to believe the property was not truly ‘available to rent’, it will not sanction expenses claims, because owners made it too difficult for tenants to rent their property,” Mousa warns. “While it is sometimes hard to believe it, the tax authorities are trying to play fair - they only want their share of the rental money you have actually pocketed.” But they want investors to play fair, too, by claiming deductions only on expenses directly related to earning it. So expenses that investors incurred for personal use of the house don’t cut it as far they are concerned. Every homeowner has expenses running their properties and they can’t claim them against tax. The overall principle is that investors can only claim expenses with regard to costs while your property was actually rented out, or while real intention was being shown to make an income out of the property, which is when, as tax authorities term it, it was genuinely “available to rent”. Stating entire income and then claiming the costs of earning it, changes the gross income to a nett income, giving a far more valid picture of what profit was made, not just your bank account balance. It is from this final clean figure that the tax authorities slice their share of the pie in the form of taxes, Mr Mousa explains. However, the final figure changes, because the claimable expenses do, if a rental property does not operate all year through. The taxman also accepts that there are good years and bad years for rental property owners, when they simply don’t have many tenants. Yet, as an owner, investors go on having expenses involved in trying to attract tenants, so some expenses involved are still claimable even when rental income is low. If either of the above couples had indeed managed to land a tenant, even for a short period, they would fall into the category of those rental property owners who have to apportion expenses according to how much of the year the premises were rented out, or were honestly available for rent. Joining them are owners who openly rent out their houses for a short period of the year, using it themselves the rest of the year, and those who do the opposite, using it themselves for a short holiday, and making it available for rent the rest of the year. Any expenses that come up while used personally or by friends are enjoying the property privately, can’t be claimed. So these taxpayers will also have to do apportionment claims. Apportionment means that those costs directly tied to rental income can only be claimed in proportion to how much of the year tenants helped you generate it. If tenants rented your property for 35 weeks of the year, the expenses would be multiplied by 35/52 to determine the claimable share of the year’s expenses. Exceptions are those expenses brought about during the course of the rental process. These include estate agents’ commission, advertising for tenants, phone calls to fix damage tenants caused, and the cost of removing any rubbish they left behind. Matthew Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media.



# # #


Disclaimer:

https://tlkpartners.com.au/



Submitted by prcagency, Press Dev on Thursday, 21 March 2019 at 2:03 PM
Category: Economy
 
Related News

Enjoy RS Wonderbar to Gain Purple Gem Rewards with Up to 80% off rs3 gold Apr.22
Friday, 19 Apr 2019

Find The Best Roofing Expert In Columbus OH With This Guide
Friday, 19 Apr 2019

Engage More Customers With Modern Design Presentations & Videos With Big Slide From SuperGoodProduct
Friday, 19 Apr 2019

Design Cutting Edge Websites & Increase Leads & Sales With This Fife Scotland Marketing Expert
Thursday, 18 Apr 2019

Get The Best Home Security Budgeting Guide DIY Expert Tips To Protect Your Property
Thursday, 18 Apr 2019

Related Events

Africa Financial Services Investment Conference London 2019
Wednesday, 8 May 2019

Digital Marketing Solutions Summit London May 2019
Tuesday, 14 May 2019

Total Supply Chain Summit Oxfordshire May 2019
Monday, 20 May 2019

Predictive Analytics World for Financial Services - Las Vegas - June, 2019
Sunday, 16 Jun 2019

TechNOVA Connected Customer 2019 in London - June 2019
Thursday, 20 Jun 2019

Latest News

Scuba Diving Costa Rica – One of the most beautiful spots on the Earth
Saturday, 20 Apr 2019

A1 Boiler Repair London offers the finest boiler repair solutions in London
Saturday, 20 Apr 2019

What to understand Just before Seeing a Foot Doctor
Saturday, 20 Apr 2019

What space is prescribed to purchase?
Saturday, 20 Apr 2019

Are Your Yorkie Dogs Shy and Timid?
Saturday, 20 Apr 2019

 
Want to get your press releases, event listings, and job ads on Scoopasia? Register now for a FREE account or login if you already have one!
Scoopasia v1.0b. Copyright © 2019
Today is Saturday, 20 April 2019

About Scoopasia | FAQ | Privacy Policy | Contact Us

Press Releases
Event Listings
Job Listings
Arts & Entertainment
Architecture & Construction
Automotive & Travel
Business
Consumer Technology
Economy
Education
Enterprise Technology
Food & Fashion
Government & Policy
Health Care & Medical
Legal/Law
News & Media
Religion
Science & Research
Sports & Fitness
Login / Register
Get Scoopasia through RSS Feeds & Email Notifications!


Journalist's Toolbox
Hello journalist, welcome to Scoopasia--a powerful online resource for media information in Asia. Scoopasia has press releases and media events for every beat and industry. All content on Scoopasia is 100% FREE. You don't even need to login!

  • Scoop Line
    (Instant Information Request)
    The easiest way to ask questions and request information from the PR community.


  • Advanced Search
    Drill down, dig deep, for media information the way you want it.

  • Journalist's Resources
    Resources and tools you can't do without.

  • PR Tools
    Scoopasia Blog Search
    Search the largest handpicked collection of Asia's most prominent and influential blogs.


    Resources
  • PR Bookmarks
  • Web 2.0 Bookmarks
  • Media Bookmarks

    More Coming Soon...

  • Upcoming Events
  • The RAK International Psychiatry Congress
  • Palo Alto Networks: Palo Alto Networks Next Generation Firewall Hands-on Seminar
  • DOZ Live Inspirational Conference (DOZ Live)
  • 3rd Annual NASH Summit | April 22-25, 2019 | Boston, MA
  • Rx Drug Abuse and Heroin Summit

  • Latest Jobs
    Sorry, there are currently no entries posted here.