+ Reply to Thread
Results 1 to 6 of 6
  1. #1
    Join Date
    Jun 2008
    Posts
    204
    Thanks
    49
    Thanked
    24
    Reviews
    0

    Default tax deductions on investment property

    Just wondering if anyone can shed some light on this for me.

    I'm a SAHM so have no income but we have an investment property that is negatively geared. At tax time when it came to claim deductions, my husband could claim his half of deductions on his income but I couldn't get anything back as I hadn't paid tax as had no income. I thought this was right until a friend in the same situation got money back.

    So can you get money back for property deductions if you have no income?

  2. #2
    Join Date
    Jan 2012
    Location
    Perth, Western Australia
    Posts
    1,914
    Thanks
    364
    Thanked
    1,502
    Reviews
    0
    Achievements:Topaz Star - 500 posts

    Default tax deductions on investment property

    I don't think so - you have to pay income tax to get an income tax return. Perhaps you should have put it solely in your partners name?

  3. The Following User Says Thank You to GM01 For This Useful Post:

    NancyBlackett  (17-11-2012)

  4. #3
    Join Date
    Jan 2012
    Location
    Perth, Western Australia
    Posts
    1,914
    Thanks
    364
    Thanked
    1,502
    Reviews
    0
    Achievements:Topaz Star - 500 posts

    Default tax deductions on investment property

    Actually, you should have some income- the rental income would be half yours.

  5. #4
    Join Date
    Dec 2008
    Location
    My house
    Posts
    1,990
    Thanks
    276
    Thanked
    277
    Reviews
    0
    Achievements:Topaz Star - 500 posts

    Default tax deductions on investment property

    Yes, she would have income from the rent, but this wouldn't have been taxed. Hence no "tax" refund.

    Also, for the property to be negatively geared, it means the expenses are more than the income.

    She would have lodged a tax return that should have shown a 'loss' which she could then use to reduce a future taxable income (for instance if she returned to work this tax year she could claim a deduction for a previous year loss to reduce her current taxable income).

    Era - not sure why your friend would have had a refund. She must have had some other taxable income for the year, she is lying or her accountant did something dodgy.
    Last edited by babycart; 17-11-2012 at 11:09.

  6. #5
    Join Date
    Apr 2012
    Posts
    2,058
    Thanks
    2
    Thanked
    310
    Reviews
    2
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts

    Default tax deductions on investment property

    Did your friend get social welfare benefits? You can elect to pay tax on this, therefore a return back

  7. #6
    Join Date
    Jun 2008
    Posts
    204
    Thanks
    49
    Thanked
    24
    Reviews
    0
    Babycart thats exactly what I thought. We did our tax ourselves but she used an accountant so maybe they made a mistake.

    Thanks for the replies :-)


 

Similar Threads

  1. Building for investment property
    By monnie24 in forum Family Finances
    Replies: 8
    Last Post: 19-12-2012, 10:38
  2. A question for those with a investment property?
    By Mumma2threecherubs in forum Family Finances
    Replies: 1
    Last Post: 31-10-2012, 12:09
  3. Investing in investment properties, do you have one, or two or more??
    By Mumma2threecherubs in forum Working From Home
    Replies: 5
    Last Post: 29-01-2012, 19:36

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Springfree Trampoline
Give the Ultimate Christmas Gift Springfree Trampoline
The World's Safest Trampoline™ is now also the world's first Smart Trampoline™. Sensors on the mat detect your every move and your jumps control fun, educational and active games on tablet. Secure the Ultimate Christmas Gift today!
sales & new stuffsee all
Bub Hub Sales Listing
HAVING A SALE? Let parents know about it with a Bub Hub Sales listing. Listings are featured on our well trafficked Sales Page + selected randomly to appear on EVERY page
featured supporter
Wendys Music School
Wendy’s Music School. Experience, Quality and great service! For qualifying students we will get you playing or singing your favourite music in 90 days GUARANTEED! Book a free assessment online now!
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!