It is an ideal time for individuals to review their investment situation and take the opportunity to minimise their tax obligations.
Here is a list of tax tips for property investors:
Individuals may be eligible for a deduction for depreciation on the cost of improvement by a previous owner, provided items are identifiable and itemized in a depreciation schedule.
Expenses for repairs to the property are deductible provided that they relate to wear and tear or any other damage as a result of earning rental income.
Individuals may be able to prepay property expenses up to 12 months in advance. Prepaid expenses are not automatically deductible. A review of eligible payments should be carried out.
A depreciation schedule prepared by a qualified quantity surveyor outlines the deductions available on an investment property. This can help to add a significant tax deduction for depreciation and also maximise an individuals cash return. The cost of a depreciation schedule is tax deductible.
Travelling to a property to inspect, carry out maintenance or collect rent may be able to be claimed as a tax deduction.
It is important to keep all receipts to be able to prove deductions and show why the expense was incurred to derive assessable income.
The ATO uses data matching techniques, including monitoring property transaction details to target property investors ensuring the correct amount of tax is paid.
Mark has helped us immensely to understand our financial position, these guys are not just tax agents, they fully understand all aspects of business.
Daniel and his team at Tactica Partners have been taking care of me, my family and my company's accounting needs and I highly recommend him and the team. They've made getting tax done so easy and Daniel is an amazing accountant and extremely thorough and helpful.
…very professional, well prepared and organised. They have given us great business and personal tax advice, offered us good business insights, and more general personal planning advice too.
They continually deliver on all aspects of their service offering. …..we appreciate the substantial assistance they have provided in managing our bookkeeping function and providing proactive tax and accounting advice. We value their ongoing input in helping us strive for continual improvement on our reporting processes and delivery of timely information to our US office.
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Mark H and Helen have given us wonderful support for our family and business accounting for several years now. When I got my first invoice I grumbled……. not now. We can see the savings and feel the security for ourselves.