Some Tax Time Tips
24 June 2020
Some Tax Time Tips
For business owners ‘TAX TIME’ can be a stressful period. It’s also important for property investors to get organised. And it’s this organisation that can lead to lower stress levels.
Here we have prepared some handy hints that might help you over this period.
Keep your documents organised
Having everything you need prior to lodging. This is going to make life easier. Make sure you’ve got all summaries or rental income & expenses, bank statements ready to go. Don’t forget invoices from maintenance throughout the year.
Your property manager should be able to organise most of this for you (if not, give the my house team a call today!).
Pay for a tax depreciation report
A quantity surveyor can produce a depreciation schedule to allow you to claim the maximum depreciation. You can also claim the surveyor’s fee too. Your property manager can also help arrange this for you.
Take note of any repairs
It’s possible to claim a certain percentage of repair and maintenance expenses after one year of owning the property.
Manage capital gains effectively
If selling your investment property is on the cards be mindful of the sale date (date on the contract). It’s the date on the contract that is important here – not the settlement date that may determine the timing of capital gains tax. You might be able to time the sale that defers any capital gains for another 12 months.
Hold onto your receipts
The ATO treats your receipts as verification that you’ve spent the money you claimed so it’s important you hold onto them. Otherwise, you may be denying yourself legitimate deductions if the ATO ever investigates your records.
Prepay non-capital expenses
Prepaying expenses such as insurance & interest costs can provide you with an immediate tax deduction. Handy if you’re on the verge of being included in a higher tax bracket.
Claim your borrowing expenses
Many of the costs associated with taking out a loan to purchase a property are tax deductible. This can include things like LMI (lenders mortgage insurance), as well as other fees like loan establishment, valuation, broker fees. So if you have purchased an investment property this year (or refinanced) be mindful of this.
Get good advice
Above all, get a good team around you. And that includes a quality accountant & financial planner. These are just some general tips, I can’t stress enough how important it is to talk to the guys & girls who deal with this day in, day out.
I’m an advocate of “always speaking with the professional”. I have often joked that I sell them but don’t ever ask me to build a house (I certainly wouldn’t live in that house). I plead with people to always engage a professional; whether that is a builder, real estate agent or at this time of year…. a quality accountant.
One thing that you might notice from the above is how important it is to have a good team on your side. And that includes a top tier property management team.
So if you’re not getting the advice or service that you deserve, give us a call and we’ll see if we can improve that.
The my house team ensures that we offer the best, proactive advice & service for all of our property investors.
If you’re not aligned with the my house team, then it might be time for an investment property health check.
Our goal is to help all our clients know their investment property is being managed well & working for them.
That’s why we’re offering a free, quick property health check. You’ve got nothing to lose and it only takes a couple of minutes. Give it a try.
The property health check will determine:
If your investment is earning the highest weekly rent
How to maximise your property’s return
Trends in the rental market you need to know
How your property compares to others
If a quick refurb or reno will optimise its value
What other local investors are doing