Don't Miss Out! Top Tax Time Tips for Property Investors

As the financial year draws to a close, residential property investors are turning their attention to tax time. Here's how to make sure you're prepared and maximise your return.

Maximise Deductions and Minimize Tax

Property investment is about making your money work for you. A key part of this is claiming all the deductions you're entitled to. This reduces your taxable income, saving you money come tax time.

• Track Rental Income: Keep a record of all rental income received throughout the year, including any additional income streams from things like parking or storage.
• Gather Receipts for Expenses: Don't forget about the costs associated with owning an investment property. Keep receipts for property management fees, interest on your mortgage, repairs and maintenance, insurance premiums, and even things like gardening and cleaning.

Don't Forget Depreciation

Depreciation is the gradual wear and tear of your property. By getting a depreciation schedule prepared by a qualified professional, you can claim this as a deduction, further reducing your taxable income.

Act Now to Reap the Benefits

Thinking about buying another investment property? Act before the end of the financial year to claim benefits in your current tax return.

Prepay for Deductions

Did you prepay an expense related to your property in June or July? You might be able to claim the full amount as a deduction in your current tax return, even if the benefit extends into the next financial year. This is particularly useful for things like insurance policies or annual subscriptions.

Claim for Less Obvious Expenses

There are many other deductions you might not be aware of. These include advertising for tenants, letting agent fees, bookkeeping fees, bank charges related to your property, and even pest control.

Avoid Common Mistakes

Don't make the mistake of claiming deductions for a property that wasn't genuinely available for rent, such as when loaned to family or friends.

Seek Professional Advice

A good accountant or tax agent can be invaluable. They can ensure you're claiming everything you're entitled to, avoid costly mistakes, and keep your records in order.

Conclusion

By following these tips and seeking professional advice, you can ensure a smooth tax time and maximize the return on your investment property. Remember, a successful property investment strategy goes beyond just finding the right property.

Understanding and applying effective tax strategies can significantly improve your investment's overall profitability. So, take action today, speak to your accountant, and get ready to claim what you're rightfully owed!