Pay day is nearly here!
A good accountant will make sure you’re claiming every cent you can in tax deductions. This includes expenses you can claim immediately and those you can deduct over future financial years.
Make sure you talk to your accountant about both.
Some common deductions you should have on your radar include:
- Repair costs
- Advertising costs for tenants
- Pest control
- Landlord and building insurances
- Body corporate fees
- Bank charges and of course interest on your loan.
But wait, there’s more.
Did you buy or sell an investment property this tax year? You might be able to deduct more than you think over time.
“Conveyancing costs, stamp duty on the property transfer and advertising the property for sale – which are all related to the acquisition or disposal of the property – are generally not able to be claimed as deductions,” Kate Forbes writes for Property Update.
“However, in relation to Capital Gains Tax, you are able to add these costs to the property’s cost base or reduced cost base.”
Lastly, make sure you talk to your accountant about depreciation, especially if you bought your property after 9 May 2017 when depreciation changes came into effect with the Federal Budget.