Property Tax Tips for Property Investors Jul 22, 2021 | Blog Now that the new financial year is here, it’s time to start looking at all the ways you can make the most of your investment property. Tax is a complicated subject, which is why you should always speak to an accountant. However, the onus is on you to keep good records. Keep Good Records If you want to claim your expenses on your rental property, it’s vital that you have good records. If you’re working with a property manager, this can be made a lot simpler as they will likely take care of all the running costs for you. However, if this is a new investment property or you’re self-managing, then you need to keep all the documents and receipts that you think will be relevant. Know Your Deductions While your accountant will know exactly what you can and cannot claim, it’s important that you take responsibility for examining all the associated costs that come with the property and seeking clarification from the accountant. Typical expenses that you can claim include: Repairs and maintenance Improvements/Renovations Advertising costs Cleaning Gardening Water Electricity and gas charges Pest control Land taxes Lease / property management costs Security monitoring costs Capital works Pre-Pay Your Expenses Depending on the type of loan you have, it might be possible to pay your interest upfront; hence you can claim it as a deduction for that financial year. Depending on your overall income and tax planning, this might be a useful strategy to consider. Similarly, it is also possible to pre-pay things like insurance and even do repairs and maintenance early. Claiming Depreciation If you have a new commercial property or if you’ve undertaken significant renovation, then it might be worth looking at how you can claim depreciation. To do this, you will need a depreciation schedule, and this is commonly done through a quantity surveyor. Many investors fail to claim depreciation, and this can be a mistake. It certainly is if you have a new house or apartment. Interest Expenses Often, the largest expense that investors face is interest on their home loan. It’s important to understand that interest expenses and the associated fees and charges are tax-deductible expenses. Why YFA? Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through us best mortgage broker Sydney. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. Our home mortgage expert is always there to assist you. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Speak to our property loan advisor now! Phone: 1300 YFA BROKER (932 276) Email: enquiries@yourfinanceadviser.com.au
