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It is that time of year again when a trip to the accountant becomes nearly a necessity if you have a property portfolio. However, as with any business meeting it would be prudent to have some knowledge and understanding of the deductions available for your property. Never assume your accountant is claiming everything that you are entitled to.
Below is the link that will take you to the Australian Tax office website for property deductions. In short, the following are immediately deductible in the year of the expense,
advertising for tenants, body corporate fees and charges, council rates, water charges, land tax, cleaning, gardening and lawn mowing, pest control, insurance (building, contents, public liability), interest expenses, property agent's fees and commission, repairs and maintenance, travel undertaken to inspect the property, to collect the rent or for maintenance.
In addition, the following are also immediately deductible; interest payments, depreciation and capital works costs. The last 2 will be calculated from your depreciation schedule.
It is also important to note what is not tax deductible. The ATO has in the past few years had investigative teams researching many property investors claims. Therefore, only claim what has been an expense in the running and owning of your investment property. It is also noteworthy, that your investment property must be genuinely available to rent if it is untenanted.
Remember that you can claim your tax deductions for the coming financial year (16-17) NOW. By claiming now, your monthly Tax will be reduced, giving you more Take-Home Pay!!. See your Accountant for more details