Can you believe we're a few short month away from another financial year? It's scary... and if you are a property investor, it's a not a bad idea to start getting your items in order.
Tax time is a crucial period in any property owner or investor’s calendar, and with good reason! No one wants to miss out on potential tax deductions or be hit with huge costs that could have otherwise been avoided.
So, what should you be looking out for?
Tax deductions: As a property investor, it pays to ensure you claim the tax deductions you are entitled to. I recommend having a qualified professional draw up a depreciation schedule, which will help outline how much your eligible to claim in depreciation at tax time. Ensure you keep records of all receipts and bank statements related to your investment property and have these on hand to pass onto your Accountant at tax time.
What you can you claim:
• Interest incurred on your loan;
• Property management fees;
• Rates; council, water etc
• Home maintenance and repairs expenditure;
• Some costs associated with the tenant, like advertising costs to get the home leased;
• Accountant, tax agent or business-related lawyer fees;
• Depreciation on whitegoods and other durables in the property. What can't you claim?
• Expenses associated with your personal use of the property;
• Travel expenses to inspect the property
• Costs relating to the purchase or sale of the investment property
• Utility bills the tenant has paid
Of course, speaking to your Accountant to truly understand what you are entitled to claim is imperative.