Property & Real Estate

Property & Real Estate Accounting

Expert accounting for property developers, investors, and real estate professionals, based on ATO property and CGT guidelines.

Property Investment Accounting

• Rental Income: Must declare all rental income including rent, insurance payouts, and letting fees
• Deductions: Loan interest, repairs, property management fees, council rates, insurance, and depreciation
• Negative Gearing: Net rental losses can be offset against other income (salary, business income)
• Depreciation Schedules: Quantity surveyor reports for plant and equipment and structural works

Property Development Tax Treatment

The ATO classifies property development based on scale, intent, and nature:

• Capital Account (Investment): Gains subject to CGT with 50% discount available if held 12+ months (for individuals and trusts)
• Revenue Account (Development Business): Gains taxed as ordinary income ??? no CGT discount
• Isolated Profit-Making Scheme: One-off developments may be taxed on revenue account

Our Property Services

• Investment Structure Advice: Individual, company, trust, or SMSF ownership analysis
• Development Feasibility: Tax modelling for development projects
• GST and Margin Scheme: GST on new residential premises and the margin scheme
• Depreciation Schedules: Maximise deductions with compliant depreciation reports
• CGT Planning: Timing strategies, 50% discount, small business CGT concessions
• Land Tax: State-based land tax obligations and threshold planning
• Portfolio Reporting: Performance analysis across multiple properties

Key Tax Considerations

• Pre-acquisition due diligence on tax implications
• Interest deductibility rules (especially for foreign residents)
• Foreign investor surcharges (stamp duty, land tax, vacancy fees)
• Division 7A implications for property held in companies or trusts
• Principal place of residence exemption and absence rules

Source: ATO ??? Property and Capital Gains Tax