The tax deductibility of investment property repairs, renovations and improvements.
Excessive claims for rental property deductions have been in the ATO’s firing line recently. One area the ATO gives a particular focus to is incorrect claims for repairs to rental properties. The distinction between a tax deductible repair and a capital improvement is very narrow and it’s easy for clients and their advisers to make mistakes.
Drawing on material from the newly published second edition of Australian Practical Tax Examples , this webinar, aims to provide attendees with a detailed overview of the law and the supporting guidance given by the ATO in respect of the tax treatment of property repairs. We will work through examples taken from the book, explaining how tax law and administrative practice applies to real life situations.
Examples are deliberately framed to reflect real life client situations and issues that you might encounter on a daily basis, as well as some of the more complex and unusual outcomes that can apply.
During the webinar, you will be guided through theory and practical worked examples illustrating the following issues:
· When and how is a repair deductible?
· When must a repair be capitalised?
· What is a repair?
· What is an improvement?
· How is an improvement treated for tax?
· Treatment of initial repairs
· Treatment of repairs to property carried out after income source ends
· How is expenditure to control health risks from dangerous substances treated?
Webinar Learning Outcomes:
Attendees can expect to complete the webinar with a detailed understanding of how the rules operate and how the rules can be applied to property owning clients so as to produce the best tax outcome whilst minimising the risk of ATO review or audit.
This webinar is suited to all accountants and tax practitioners with clients who own or manage rental properties as well as other professionals who deal with rental property owners.
Mark Chapman is the Director of Tax Communications with H&R Block Australia. He writes regularly on tax issues for numerous media outlets and presents on topical tax topics at seminars and other events. He broadcasts frequently on radio and television and writes a regular column for Money Magazine and Yahoo7 Finance. As a tax practitioner in the UK, he occupied a number of senior positions before moving to Australia in 2007 to join the Australian Taxation Office (ATO) as a senior director. Mark is also the author of Life and Taxes: A Look At Life Through Tax published by Wolters Kluwer, CCH Australia.
Mark has over 25 year’s experience as a tax professional in both the UK and Australia, specialising in tax for small business and individuals. He is a fellow of the Institute of Chartered Accountants in England and Wales, a fellow of CPA Australia and a member of the Chartered Institute of Taxation. He holds a Masters of Taxation Law with the University of New South Wales.
You will be provided with: