Tax time is almost upon us again and while tax time isn’t a very popular time of year for many property investors, it does pay to get organised early. Those who get their items organised early are more likely to maximise their return and make the most of their investment.
A few things to organise right away:
- Understand what you can claim
To get the most from your return you should aim to understand exactly what you can and can’t claim. By knowing what is deductable you are more likely to keep clear records of all applicable expenses. Items you may be able to claim all or part of include things like council rates, insurances, agent statements, repairs and maintenance, interest, depreciation, land tax and much more.
- Call up a quantity surveyor
If you don’t already have a depreciation schedule for your investment property then there’s no time like the present. Many property investors miss out on thousands of dollars a year simply because they fail to claim on depreciation. Depreciation benefits are available for both new and old properties. Find an experienced and qualified quantity surveyor to produce a depreciation schedule for your accountant to use. The report is tax deductable and is often good for a number of years.
- Visit your investment properties before July 1
Changes from this year’s federal budget mean that travel expenses incurred on visits to investment properties will be no longer be claimable as a deduction from July 1, 2017. If any travel to your investment property is needed, it’s best to do it ASAP so these can be offset for the current financial year.
- Bring forward expenses if you don’t intend to keep your property rented
Not planning on renting your property out in the new financial year? If that’s the case then it’s important that any tax deductable expenses are incurred before the end of the current financial year. Costs incurred in the next financial year can’t be claimed back if the property hasn’t been producing an income.
- Get the right advice as soon as possible
If you’re a property investor looking to make the most from your tax return then the best thing you can do is talk to a reputable accountant as soon as possible. The right advice will help ensure that you’re claiming on everything you should be and it will also help take some of the stress out of tax time.