- Rental Property Tax Tips
Tax Tips for Your Rental Property
Owning a rental property will inevitably mean an increase in your taxable income. For this reason, it’s important to know some rental property tax tips.
Make sure you are claiming as many deductions are you’re entitled to. This series of blogs will help you as a property investor save money by reducing your taxable income when it comes to the EOFY rush.
While we all want to reduce our tax bill as much as possible, it is essential that you limit your deductions to what you are legally entitled to. Claiming more than you’re eligible for could see you appear on the ATO’s radar.
What Can I Claim?
There are many different deductions available when you own an investment property. You can claim some expenses immediately in the financial year you incur them; such as council rates, cleaning, maintenance or agent fees.
For other expenses, however, you may have to claim them over several years. While in some circumstances, you can’t claim these rental expenses at all.
When claiming a deduction over several years, through depreciation, it is important to use a professional quantity surveyor. A quantity surveyor will make sure you are claiming commonly missed expenses, as well as maximise your claim through methods such as Diminishing Value.
Rental Property Tax Tips Articles:
Claiming depreciation on your property is one of the most critical steps in an investor’s journey. And it’s the only deduction that can be subjective. All other expenses – such as interest, strata fees etc. must equal the amount you have precisely paid out. But, having an expert prepare, your tax depreciation report can enhance […]
Have you ever wondered how Washington Brown actually figures out the amount of deductions you will receive? Well, tax legislation sets down the way in which to calculate depreciation using the diminishing value method. Basically, you take the number 200 and divide it by the item’s effective life. For example, 10 years, and express that […]
CLAIMING YOUR DEPRECIATION DEDUCTIONS MONTHLY You don’t have to wait until the end of the financial year to claim these deductions. Astute investors can request that their accountant lodge an Income Tax Withholding Variation (ITWV) form. On this form you can estimate your annual depreciation allowance. You can also offset this against your monthly tax, […]
Rental expenses- Did you know? You can claim a deduction for certain expenses you incurred during the period your property is rented or available for rent! Types of rental expenses include There are three types of rental expenses available to investment owners; Cannot claim deductions Can claim immediate deductions in the income year you incur […]
All property investors must consider tax deductions. Australia has clear rules in place. The Australian Taxation Office (ATO) outlines the basics, but here’s what you really need to know. There’s one key question to ask yourself when you buy an investment property. What can I claim? It’s a simple question, but one that doesn’t have […]
It’s hard to believe, but we’re approaching that time of the year again – tax time! As the end of the financial year draws closer, you’ll likely start thinking about that big fat tax refund and what you can do with it. But first you need to make sure you maximise your cheque. To help […]
Simple Tricks For Beating The End of Financial Year Rush Every one exchanges and settles a property on different days throughout the year. However, the end of the financial year only occurs once. As does the end of year rush! Your report should calculate exactly how much money you can claim for building allowance depreciation, […]
Immediately Write Off $300 and Low-Value Pooling (NOTE: Deductions for these plant and equipment items may only apply if you bought the property prior to May 9, 2017 – Read about the Budget changes here). Depreciation deductions are pro-rated depending on when you take ownership of a property. However, like with everything, there are exceptions […]
What’s the difference between the Diminishing Value method and the Prime Cost method of depreciation? So, you’ve received your tax depreciation schedule – now you have a choice to make. Should you choose to claim the Diminishing Value method or the Prime Cost method? Both methods are based upon the effective life of the asset […]
It’s tax time and I thought I’d provide a list of some things that may help you save some money. If you’ve been reading this blog, you’d know by now that some things, name depreciation, cannot be claimed as an immediate deduction, however, there are some that can be. So what are these expenses that […]