Important Tax Tips For Property Investors

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

While property investors are privy to a range of specialised tax breaks, they are also subject to taxes most non-investor homeowners aren’t, including capital gains tax (CGT) and land tax.

Q. How can property investors maximise their deductions

A. Property investors can claim a wide range of deductions in respect of a rental property if they retain the appropriate documentation and invoices.

Some of the more common expenses you may be able to claim in relation to the investment property include:

• Advertising for tenants
• Cleaning costs
• Council and water rates
• Electricity and gas
• Gardening costs
• Insurance (building, contents, etc.)

Q. What is not deductible?

A. Some outgoings are not deductible but can form part of the cost base of a property if subsequently sold, for capital gains tax purposes.

Along with the original purchase price, some items you may wish to include in the cost base are set out below:

• Stamp duty on purchase
• Valuer’s fees on acquisition
• Legal expenses which are incurred on the purchase and sale of the property
• Advertising costs on sale
• Auctioneer’s fee
• Capital expenditure on improvements that increase or preserve the asset’s value (e.g. building a new garage).

Do you need more detail on this subject? Head on over to the full article here  for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on (0414) 593 846 .

Thanks,

Salena