DFk Crosbie Square Logo

Tax tips for property investors

real estate development accounting
Share on facebook
Share on twitter
Share on linkedin

Owning an investment property can provide great benefits, including additional income and entitlement to tax deductions.

Now is the time for property investors to take advantage of the tax strategies available to them this financial year.

Prepaid expenses:

In order to maximise your tax bill in the financial year, complete any maintenance expenditure by 30 June. Ensure to distinguish between what the ATO considers a ‘repair’ and an ‘improvement’, as improvements are non-deductible.

Interest:

Prepay interest on property investment loans if you have adequate cash flow in order to claim an immediate deduction. Investors may choose to pay interest in advance in order to simplify finances by making one prepayment of interest upfront or protect against possible interest rate rises over the 12 month period.

Record-keeping:

Investors must maintain a sufficient filing system to substantiate any claims made. The ATO requires you to keep up-to-date records of things such as proof of earned rental income, all incurred expenses, periods of private use by you or your friends, periods the property was used as your main residence, loan documents and efforts to rent out the property.

Depreciation deductions:

A depreciation schedule can be provided by a qualified quantity surveyor, outlining the tax deductions that are available and help to provide a significant return. The cost of a depreciation schedule is also tax deductible.

If you require any advice on tax and investment property contact your accountant.

Subscribe to our Newsletter

Join our mailing list to receive newsletters and up to date information.

Share this post with your friends

Share on facebook
Share on twitter
Share on linkedin

Contact us

Specialist accounting and business advice, knowledge and experience for businesses and professionals.

Newcastle

Level 5, 12 Stewart Avenue, Newcastle West NSW 2302

Sydney

Level 10, 20 Martin Place, Sydney NSW 2000

Sign up to our Newsletter

Join our mailing list to receive newsletters and up to date information.