June 15, 2015
The end of financial year is nearly upon us and there are a few things you should know about and prepare for to ensure you receive the tax benefits you're entitled to as a property investor.
Pay investment property related bills early - if you have excess funds as the end of financial year approaches, you can pay some bills early, such as body corporate levies, rates and insurance.
Arrange a depreciation report on all "plant and equipment" in your investment property. This is done by a quantity surveyor and allows you to claim depreciation on items within your property as they decrease in value over time. This can be a substantial deduction, so please make sure you have one!
If your property needs repairs or maintenance, do them now so you can claim the costs in this years' tax return. Anything under $300 is an immediate write off in the year it occurs. If you can't arrange for work to be completed by 30 June, maybe you could buy fittings or pay a deposit.
Consider pre-paying interest. You can pre-pay up to 12 months of interest on an investment debt and claim the deduction on the interest immediately.
Talk to your property manager and arrange to have your annual statements emailed to you asap after the end of financial year. While you're talking to them, you could also ask for an annual rent review if you haven't done one recently.
Finally, talk to your accountant about submitting an Income Tax Withholding Variation for the coming year so you can estimate your deductions for the year ahead and claim them every week.
This advice is for your information only and should be used as a guide. Please speak to a professional tax agent for advice specific to your circumstances
If you're interested in investing in property, please call us to talk about your options for either buying your first investment or wanting to build your property portfolio. We're always happy to help!