TAX TIME CHECKLIST Lower your taxes next EOFY! Investing in property is a fantastic way to reduce your tax. Paying less tax means more money in your pockets to spend on family holidays, your children’s education or yourself (go on, we won’t tell). Save Money This Tax-Time, so go out find a mentor or join a reputable investors club, network your socks off or ask us for some referrals. Just remember always seek advice of a licensed by ASIC Accountant - Financial Planner, MFAA member broker or a trusted friend who has achieved some success already as an investor ( who has built a team of advisors) (the art of leverage using some one elses experience and network) OPM (other peoples money ie. The Bank) to increase your asset base and your wealth. If you have one or more investment properties already, there is a long list of claimable expenses that can reduce your tax. Here are just some of the expenses you can claim: Depreciation Schedule As your investment property gets older, it experiences general wear and tear. A depreciation schedule calculates how much of this general wear and tear you can claim each financial year. While the amounts vary, the newer the property, the more you can claim. A depreciation schedule is essential for every investment property you own! Interest and Borrowing Expenses You can claim the interest payments on an investment loan back on tax. You can also claim any account keeping fees on accounts held for investment purposes. Repairs and Maintenance While a tenant complaining about the plumbing may be the last thing you want, all repairs and maintenance for your investment property can be claimed on your tax return – but only if the wear and tear or damage is a result of leasing the property. Capital Works Deductions Capital works include building construction costs to the building or surrounds. This can include extensions, extra walls or bathroom and kitchen renovations. Agent and Body Corporate Fees You can claim the property agent’s fees and commissions, as well as advertising for tenants. If you have a Body Corporate, you can claim those fees and charges as well. Insurance If you have an investment property, you need insurance. Building, Contents, and Public Liability insurance are all tax deductable. Rates You can claim both Council Rates and Water Rates on your tax return. Travel Expenses The cost of travelling to inspect your rental property or to maintain the property is a tax deductable expense. This includes flights or car travel. If your property is in another state and you have to stay overnight, you can also claim meals and accommodation.
Posted on: Tue, 08 Jul 2014 10:17:44 +0000
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