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Free Report: Tax Traps to Avoid If Your Property Was Damaged in the Fires or Floods

By in Case Study, Free Resources

There’s no doubt that we are seeing an increasing amount of natural disasters… from unstoppable flash floods to raging bush fires.

And it’s always devastating when your property is damaged by fires or floods, be it your home or investment.

Unfortunately, it’ll never be an easy fix either as it can range from significant repairs to a complete rebuild. Needless to say, the financial and emotional consequences are hard to bear. What’s worse, sometimes when you’re on your way to recovery and decide to rebuild your property, you get hit by a big fat tax bill 😨

So to help raise awareness of this tax debacle, Bryce, Ben and Julia unpacked all the key details in Episode 386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster. The best part is… Julia has also helped create a free report to help provide more clarity!

So what are you waiting for?

Let’s get started! Simply fill in the form below and we’ll email the PDF to your inbox 😊


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p.s. If you are affected emotionally, please do not hesitate to reach out for help. That’s the first step to recovery.

Here are some useful links that might help you take that step:

 

 

 

 

 

 

 

 

 

 

 

 

 

386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster – Chat with Julia Hartman

By in Free Resources, Podcast

To celebrate the beginning of the festive (tax) season, we’re welcoming back a special guest…. 

It’s the only and only…Julia Hartman!!!!  

And this week she’s sharing with us how to repair or rebuild your house if it was damaged by a natural disaster (Like a fire or flood) … 

Without paying tax through your eyeballs!!!  

She’ll cover all bases from why it’s paramount that you move back into your house as soon as it’s been fixed (trust us, it’ll save you a heck of a lot of tax…listen in to find out what we mean!) 

To what you should do if you’ve been living overseas when your property was damaged!  

But we’re not just covering that of course, Julia’s got far too much knowledge just waiting to be shared! 

We’re also looking at all the recent changes to tax rates and how you can be prepared for them this tax season… 

Plus – we unpack all things Duplex like…  

What’s the optimal way to create a battle-axe duplex (and not lose any or all of your benefits to GST or CGT!!), 

Why you should keep records of everything from lawnmower fuel to maintenance costs,  

And basically, in the wise words of Bryce, how you can “Make apple pie with apples” folks!!  

But we’ll give you a little spoiler first…before embarking on EITHER of these renovations, it’s critical that you speak to a tax advisor who specialises in property. 

We can NOT stress this enough – there are so many fine details in the process and rather than giving yourself a headache, or worse, kicking yourself later for paying unnecessary tax, it’s best to seek advice first!! 

Now that we’ve got that triple highlighted, tune in to today’s episode folks! It can seriously save you a lot of stress later down the track. 

 

Free Stuff Mentioned 

 

Here’s some of the gold we cover… 

  • 1:52 – Don’t miss the next PICA webinar with Peter Koulizos!!  
  • 2:51 – Remember to stop and smell the roses folks…  
  • 6:35 – Welcome back Juliaaaa! (She’s a LEGEND!)  
  • 8:00 – What should you do if your home or investment property was damaged by fires or floods?  
  • 11:48 – Do I need a property depreciation expert? (PLUS, listen to this part for a silver lining)  
  • 14:47 – Why you shouldn’t accept cash payouts for rebuilding!  
  • 16:34 – The importance of intention and using the principal place of residence exemption   
  • 18:20 – What happens if I choose to sell? (And tax implications) 
  • 21:55 – Use a M___ Scheme to reduce your CGT!  
  • 24:28 – Case study with Julia’s client 
  • 28:57 – Living overseas? Listen to this part!  
  • 33:16 – Let’s RECAP! (Want more details? Read the FREE report in our show notes)  
  • 36:00 – Building a Duplex: What to consider when demolishing your home!  
  • 39:38 – Why having the INTENTION to use it as a duplex has a lot of upsides  
  • 42:47 – The ideal battle-axe duplex situation is… 
  • 44:10 – Julia’s advice on Buying and Demolishing vs. Renting  
  • 53:30 – Changes to the Tax Rates: Why we think you should claim your deductions NEXT financial year!  
  • 55:54 – Ben’s prediction for the future… 
  • 58:50 – Keep it simple folks, share the CGT!  

And… 

 

381 | Should I Continue Investing After 40?

By in Podcast, Q&A

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Do you know how to make your invisible finances….visible? Or what we mean by “the big rocks in the jar”?!  

It’s been a while since we’ve done a Q&A Day folks, and boy we’re covering a lot of ground! We’re answering the questions above, and more, including… 

Debunking the “too old to invest” mentality that many people fall into, WHY it doesn’t work… 

AND how it leads to unfortunate statics, like how

73% of all Aussie property investors stop at one property, and 91% stop at 2!

Folks, we need to change this statistic which is why we’re exploring what our question-asker (and you) can do to avoid self-limiting action.  

Bryce also lists some great examples of people who’ve only found success later in life; listen in if you need some inspiration.  

PLUS, how you can use Capital Gains Tax (CGT) to best benefit you!  

Yep. We’ve got 2 listeners interested in CGT in 2 VERY different ways… 

We’re explaining what CGT is, clarifying whether it affects borrowed money and asset appreciation AND if it’s possible to dodge THE 6-year rule!!! (Don’t know what that is? Tune in to find out 😉)  

We’re also hitting a huge pain point of Ben’s, related to why banks treat investors (over owner-occupiers) like second class citizens, and why it doesn’t make a lick of sense to us!  

PLUS we discuss the floods on Australia’s east coast and its impacts on the property market. Our thoughts go out to all the people affected by this disaster ❤️. 

Of course, since it’s a Q&A day there are tons more good stuff crammed in as well.  

All questions are listed below folks – so tune in and enjoy!  

p.s Remember to send us your tax questions BEFORE the season starts through the Speak Pipe widget found on The Property Couch website. (You’ll find it on the bottom right side!)  

p.s.s Did we also mention if we answer your question in the upcoming podcast, you’ll get a free Start & Build course? 😉  

 

Free Stuff Mentioned 

 

The Questions We Answer 

Anonymous on Regional Investing   

“Hi Ben and Bryce,

Love your show and have finally hooked hubby into listening too! Question – We are both 41 years old, have a young family, and work full time. We have a mortgage on our principal place of residence in Sydney and have used our equity to purchase 2 properties in regional NSW over the last 2 years (in the same town of 65000 people).

Given we are early 40s and are keen to continue investing in regional NSW (needs to be somewhere hubby can get to and run repairs as he is handy) are we getting too old to have over two investments? Thanks!”

Riley on Loan Security/Captial Gains Tax on Principle Place of Residence 

“G’day team, 

I’m a rent-vestor that’s looking to purchase a home for myself in the next 6-12 months. I have enough equity in my investment property that I could feasibly loan against in order to generate a deposit. 

My question relates to Capital Gains Tax. I understand that I can loan against equity to purchase another investment, however, am I able to loan against equity to purchase a home? 

Will there be any capital gain associated with using the loaned money to purchase a PPR as opposed to another investment property? 

 I’ve been led to believe this is the case but haven’t been able to substantiate the claim through my own research. Any thoughts?” 

Anonimous on Capital Gains Tax and the 6 Year Rule 

“Can you tell me more about the 6-year rule?  

I understand that if you rent out your primary residence for less than 6 years and move back into it then you don’t have to pay CGT when you sell.  

Let’s say I buy a new house and rent out my current primary residence, can I move back and forth every 5 years between the two properties to avoid CGT when I want to sell one of them? 

Sorry if you covered this in a past episode, I’m getting my way through the 400 or so episodes!”  

 Tomasz on Split Owner Occ loan to fund investment:   

“Hi Guys, 

Love the show, I wish I had found out about it from Day 1 as it would have lead me to follow the knowledge you have shared. Thanks in advance for answering this question. 

I have a $400K Owner Occ loan with $200k available for redraw. I am planning to use approximately $150k of the redraw funds to purchase an investment property. My bank allows me to easily split this $400k loan into $250k/$150k splits. Do I have to change the $150k loan to an “investment loan”? Or can it stay as an Owner Occ loan? 

I am confused as the interest for the $150K loan will be tax deductible but the security for this loan is still the house I live in. Further to this can you share any information relating to why Investment interests rates are higher than Owner Occ rates?”  

 

Here’s some of the gold we cover… 

  • 0:48 – A catch up on Ben and Bryce’s social life since last week… 
  • 3:32 – Rob (Aka. Buggerlugs the boy) and family of Frank, Tracy, Layla & Elke [Kenny] cheers for the great reviews.  
  • 12:17 – How this lesson from the meat-packing industry can apply to…property?! 
  • 15:50 – Anonymous’ Question 
  • 16:06 – How old is too old??  
  • 17:08 – Don’t fall for these negative mentalities (Be more like Julia Child, Stan Lee and these other greats!)  
  • 22:23 – How can you make the “Invisible, visible” and stop limiting your portfolio to 2 properties!  
  • 27:26 – What do we mean by “the big rocks in the jar”??  
  • 28: 35 – Riley’s Question  
  • 29:22 – What is Capital Gains Tax?  
  • 30:22 – Why ______ does NOT affect asset appreciation or capital gains!  
  • 31:10 – Purpose NOT security folks  
  • 32:10 – The rule of thumb for deductibles…  
  • 33:18 – How you can ask us (and returning podcast guest Julia Hartman) your questions BEFORE tax season!  
  • 34:46 – Anonimous’ Question 
  • 35:15 – Why can you only have 1 current primary residence?  
  • 36:54 – Tomasz’s Question  
  • 37:59 – Why do banks treat investors like second class citizens?!  
  • 42:00 – When should you change your loan?  
  • 44:22 – Why Ben was called “That mortgage broker” by a politician…  
  • 46:20 – Bryce’s house reno lifehack!  
  • 48:30 – How will the floods affect Australia’s property market?  
  • 52:15 – Our future predictions for supply and demand in flood-affected areas  
  • 54:00 – Will insurance premiums go up?  

 

Bonusisode with Julia – The Top 5 Tax Rules Every Property Investor Must Understand

By in Free Resources, Podcast

Hi folks, before you tune in to this episode, download the free report here: https://thepropertycouch.com.au/tax

Or simply fill in the form below and we’ll email you the PDF right away:















Julia referred to a table in the episode that might be hard for you to visualise in audio format so we’ve curated a free report to include the graph as well as other useful references. 😉

——

You can’t avoid it, so you might as well learn to understand it.

Better still, the more you know about it, the more you can ‘work’ with it, instead of working against it.

What are we talking about? Tax.

As Ben mentioned in last week’s episode (361 | When Is It Too Late To Get Into Property?), here’s the bonusisode he did with Julia!

Getting the right tax advice can result in vastly improved financial windfalls vs. getting little or no advice can see you paying more tax than you deserve or one could argue is even fair.

Introducing our new Property Tax education series – “Talking Property Tax with Julia Hartman”.

In our opening series titled ‘The Top 5 Tax Planning Rules Every Property Investor Must Understand’ we talk about tax rules that have serious downside risks or upside benefits if you know more about them.

Tune in to this episode to learn more!

P.S. If you’re looking for an experienced and qualified tax accountant, you can reach out to us here 👉 https://thepropertycouch.com.au/tax

P.P.S. And don’t forget to download the free report below!















 

Episode 351 | Why The Cost Of A Brick Can Get You More Cash Back! – Chat with Bradley Beer

By in Podcast

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Did you know that the BRICKS on your investment property actually influence the amount of tax depreciation you can claim?

… Wait, what!?!

Yep. Here to unfold the tax secrets only Quantity Surveyors know about is none other than Bradley Beer, CEO of BMT Tax, the largest and most trusted quantity surveying firm in the country.

Basically, Brad is going to walk you through the little-known legalities of depreciation – and how much you can really claim when the totality (and history!) of your investment property is considered. Handy hint: a LOT of investors are leaving money on the table when it comes to this!

Co-hosting today’s episode as part of our AweGuest Series, Brad Beer is THE expert you want to hear from when it comes to tax depreciation claims – to give you an idea, his company has completed almost 750,000 depreciation schedules for property investors… so let’s just say he knows more than the “ins and outs” of how to maximise the cash you can get back while still staying on the right side of the law!

A bit more about today’s co-host: Aside from working with BMT Tax Depreciation since 1998, Bradley Beer is also a member of the Australian Institute of Quantity Surveyors, the Royal Institute of Chartered Surveyors and the Auctioneers and Valuers Association of Australia, which means he contributes to the latest information within the quantity surveying and the property industry in Australia. His knowledge as both a quantity surveyor AND property investor means he is a highly sought-after speaker and regularly features in national events, conferences and the media to share his knowledge with the wider property investment community.

 

So. WHY can the cost of a brick get you more cash back???

Tune in now to find out, folks!

 

Free Stuff Mentioned

Hust a quick update on our NEW TAX SERVICE as well folks, the response rate had been really good! So Bryce has asked our Tax Accountants to free up their calendar and move things around so that we can help more of The Property Couch Community! So if you are on the hunt for a specialised property tax accountant, simple fill in the form below and we’ll get in touch with you very soon. 😉

  • Please select your type of Tax Return

  • If you've engaged our services before, tick the checkbox below:

 

10 Mission-Critical Answers You’ll Get…

  1. WHAT is property tax depreciation?
  2. WHY is it important for investors?
  3. WHO is a quantity surveyor and why do they get involved in providing depreciation schedules?
  4. … But doesn’t an accountant look after depreciation!?!
  5. Is it worth getting a depreciation schedule for OLDER properties?
  6. HOW does depreciation work when renovating?
  7. WHEN should an investor be thinking about property depreciation?
  8. What can an investor do if they have been missing out on depreciation deductions?
    • Can they go back and get and missed deductions?
  9. How can an investor find out if getting a depreciation schedule completed will be WORTH IT?
  10. What is involved in preparing a tax depreciation schedule?

 

 

The Listener Questions We Answer

Question from Sharon Paterson on “Improvement or Repair” For A Leaking Hot Water Service

Hi Bryce and Ben, my name is Sharon, and I’ve been listening to your podcasts now for quite a few years and I love listening to them every week. My question is probably for Julia or for Brad –it’s in relation to replacing a hot water service. It was leaking so it had to be replaced, it wasn’t an improvement, and because the cost was nearly $1800, I am just wondering if that can be written off against my tax or do I have to depreciate it?

 

Question from Mick on “Improvement or Repair” For Replacing Cracked Tiles On Roof

Hi Brad, just a quick tax depreciation question from me. We have an investment property that’s getting on age a little bit now and has a concrete tile roof. Some of the tiles on this roof are cracked and need to be replaced, charge for facing is they are beyond repair and

we’re finding it difficult to source tiles to replace them with. Say the recommendation from our builder is to reroof the house with Colorbond… can we claim this as capital works or can we claim it as a repair? We’re hoping we can claim this as a repair because we’ve been told that the roof is not replaceable. Any advice would be appreciated. Cheers!

 

 

Question from Leonard on How To Choose A Quantity Surveyor

Hi my name is Leonard and I’ve got a question for Brad Beer. Hi Brad, how should investors go about choosing a quantity surveyor to work with? What can a good quantity surveyor do that a not so good one can’t? And if depreciation values are determined by a set of rules, isn’t the outcome going to be the same anyway regardless of who we work with? Is it just a matter of picking who provides the best price? Thank you very much and looking forward to your response.

 

 

Question from Leonard on Turning PPR Into A Rental

Hello everyone, my name is Leonard and I have a depreciation question for Brad here. We have a PPR which we have lived in for three years. We are the first occupiers as we

bought it new. Next year, on the 4th year, we will move out and turn our PPR into a rental property. I have 2 questions.

First, how many years of depreciation deductions do we have remaining on the property? Will it be 40 years starting from the time it became a rental? Or 37 years as the depreciation had already commenced when we lived in the property but it was just not claimable as a tax deduction?

Second question: will we still able to claim depreciation on the fixtures and fittings because the property is rented out for the first time?

Thank you.

 

Question from Kim on Overcapitalising?

Hi this is a question for Bradley Beer. Bradley, I wanna know, I often hear people overcapitalising on their investment or even their home property— is there a general rule you think clients should stay with for insuring that they don’t fall into this trap of overcapitalising? Thank you!

 

 

 

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