Gartly Advisory is a chartered accounting firm in Ormond that looks after property investors across Melbourne. We prepare tax returns for people with rental properties, make sure depreciation and capital allowances are claimed correctly, work out capital gains tax when you sell, and advise on structures and GST for renovators and small developers.
Book a discovery meeting or call (03) 9597 9966.
Who we help
- Individuals and couples with one or more rental properties
- Investors holding property in a family trust, company or SMSF
- People selling an investment property or a former home
- Renovators and small-scale developers building or subdividing
- Executors dealing with property in a deceased estate
What we help with
- Rental property tax returns: income, interest, rates, insurance, agent fees and other deductions, with the correct split between repairs, improvements and initial repairs (see initial repairs on a rental property).
- Depreciation and capital allowances: using a quantity surveyor’s depreciation schedule to claim capital works and eligible plant and equipment (see capital allowances for investment properties).
- Capital gains tax on sale: cost base records, the CGT discount where it applies, main residence and partial exemptions, and the timing of the sale.
- Structures: whether to buy in your own name, jointly, through a trust or in an SMSF, and what that means for tax, land tax and asset protection.
- Victorian property taxes: land tax and stamp duty questions (see our stamp duty Victoria guide).
- Renovating and developing: whether a project is on capital or revenue account, GST registration and the margin scheme, and cash flow at settlement.
- Foreign resident withholding: clearance certificates when you sell (see foreign resident capital gains withholding).
How it works
- Discovery meeting: we look at your properties, ownership and plans.
- Records: you share settlement statements, loan statements, agent statements and your depreciation schedule; we tell you what’s missing.
- Return and advice: we prepare and lodge your return and flag anything worth planning before 30 June.
- Before you buy or sell: talk to us first, so structure and CGT are considered before contracts are signed.
Frequently asked questions
Can I claim repairs to a rental property I just bought?
Generally not straight away. Fixing defects that existed when you bought the property is usually treated as a capital cost rather than an immediate deduction. Read more about initial repairs.
Do I need a depreciation schedule?
For most investment properties it’s worth getting one from a qualified quantity surveyor, so building and eligible fixture deductions are calculated properly. The rules differ for new and second-hand residential properties.
How is capital gains tax worked out when I sell?
Broadly, the gain is the sale price less your cost base (purchase price, buying and selling costs, and some capital improvements). Individuals who have held the property for more than 12 months may be eligible for the CGT discount. The details depend on how the property was used and owned, so get advice before you sell.
Should I buy an investment property in a trust?
Sometimes. A trust can help with asset protection and flexibility, but it affects land tax, negative gearing and how losses are used. We model the options with you before you buy. See putting your home in a trust and SMSF property.
General information only. It doesn’t consider your personal circumstances; speak with a registered tax agent before acting.
Property specialists we work with
The following are trusted advisers that we recommend when you need property help with various matters to do with real estate.
CGT Valuations for Tax purposes
For many Capital Gains matters, it is essential to organise a professional valuation that can provide you a cost base. Typical this may be needed when you are determining a value for a non-related transaction, change of use, estate planning, divorce or upon death.
https://www.insightproperty.com.au/
Or
https://www.superannuationpropertyvaluations.com.au
BMT property capital allowance schedule
Property, new or old, can, in many cases, obtain additional tax deductions based on the building and fixtures. A Tax Depreciation Schedule is a comprehensive report that outlines a property’s historical construction costs and asset values, as well as an annual value for their depreciation due to ageing and wearing out. A Tax Depreciation Schedule can also be called a Capital Allowance and Tax Depreciation Schedule. These guys do a great job:
Lawyers who understand land and transactions associated with the property:
Brett understands the intricacies of Property and is highly recommended when it comes to property law.
Changing your principal residence – notifying Victoria State Revenue
Sometimes you may choose to elect to move from your home in the city to your holiday home. Under Australian Taxation Law, you are only allowed one property to be nominated as your PPR – Primary residence to be exempt from Capital Gains Tax. In doing so, you may need to update the rates and land tax details – follow this link for more details.
https://www.sro.vic.gov.au/pprexempt
Geoff Gartly – Property Accountant
We are also here to help you with all your property needs, from tax through to structure.
Many clients are unaware of the cgt implications surrounding their home and estate planning. Capital Gains Tax can be planned for, and we recommend that you discuss your strategy with Geoff. Many taxpayers will be sitting on substantial gains. If your business holds business real property, there may be an opportunity to explore transferring or selling to your SMSF.
