As we head towards the end of the financial year it’s always a good time for investment property owners to look at how they can minimise their tax and maximise gains on their investment.
Tax and end of the financial year are not topics that many get excited about so we’ve tried to simplify some of the things you need to think about and ways you can minimise your tax footprint.
Is your investment property haemorrhaging cash in areas you do not need? Now is the time to review your budget and protect your income.
Make some time (without any distractions) to take stock and review what costs you need and what you can cut or get a better deal on.
This may also involve working out if you are dealing with the best Real Estate agent to handle your needs.
What expenses you can claim:
When it comes to lodging your end of year tax, you can claim many expenses on your investment property, and these can include but are not limited to; the management costs of your property and the interest on your loan (if you have one).
This can also include bills such as real estate letting fees, body corporate fees, land tax, maintenance costs and depreciation.
Get those Minor Repairs:
Whether it’s fixing a leaking tap, repairing a dodgy door or adding a fresh coat of paint, deductions related to wear and tear or maintenance of a property are all immediate tax deductions for property investors.
The Australian Tax Office (ATO) treats larger renovations as capital improvements so these need to be written off over several years, but general wear and tear and minor upgrades should be looked at before financial year-end.
We offer free advice to our clients in the form of a tax depreciation letter that can assist you with off-setting your taxable income at financial year-end. If you’d like to know more please get in touch with our friendly team today.