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.
