- Property Tax Tips
Owning an investment property means that you’ll be receiving a rental return, which will add to your overall taxable income. With some helpful property tax tips, you may be able to reduce your tax bill by understanding which deductions you are eligible for.
Types of Property Tax
Generally there are two key tax liabilities when it comes to property:
- Rental returns adding to your taxable income
- Profit made once you sell the property triggering a Capital Gains Tax liability.
Can I Reduce My Property Tax?
While the rental income you receive may significantly increase your taxable income, there are a lot of deductions available to investors.
In fact, it’s possible for your tax deductions to outweigh the income received from the property. In these circumstances, the property is said to be negatively geared.
Property Tax and Depreciation
One of the greatest property tax tips we can give you, is to make sure you are claiming the maximum depreciation deductions allowable.
This tax deduction is said to be ‘non-cash’. This means you don’t have to spend any more money each year to claim it.
A tax depreciation schedule could save you thousands of dollars each year.
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 […]
Rent expenses are deductible to the price that they are incurred for the purpose of producing rental income. Sometimes, rental expenses can be deductible for periods even when the property is not being rented out. However, this is only the case provided the property is genuinely available for rent. This means, the property is being […]
Did you know? Did you know that lower-priced property often has a higher depreciation ratio in relation to the purchase price? During one of my recent media interviews, a journalist asked me to explain my comments on this issue. Most of us know that higher-priced property tends to rent on a yield far less than […]
Claiming depreciation on residential property is one of the most important steps in an investor’s journey. But those new to property investing often overlook some important key items of depreciation. The three most commonly missed items property investors can claim are: • Design and professional fees • Council costs • Builder’s profit Most people know […]
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 […]
Attention! If you have a holiday investment home, you will be interested in this. The Australian Tax Office (ATO) has begun focusing on ‘holiday home’ investors to get you up to scratch on the current tax situation. Why the sudden shift in focus? This alteration in tactics is due to the ATO growing concerns with landlords and over-claiming […]
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 […]
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 […]
Property depreciation is one of the largest tax deductions for homeowners in Australia. But did you know that you can backdate your property’s depreciation? Doing so could save you thousands of dollars every year. As an investor, you need to take advantage of all the tax deductions Australia has to offer. Property depreciation deductions allow […]
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, […]