There number of tax and other benefits that can be associated with owning an investment property. With the end of financial year fast approaching we thought we would share our top end of financial year tax tips and help you get your house in order.
Pay your expenses this side of the tax year
In general, the best way to boost a property investor’s refund is to pay for any expenses before June 30, 2012, that way the investor can claim these expenses as a tax deduction in the 2012 financial year.
To ensure all tax deductions are claimed, we recommend engaging an accountant who specialises in property investment. Some of these expenses include body corporate fees, borrowing costs, property management costs and insurance.
Also engaging a quantity surveyor enables investors to claim maximum deductions depreciation on depreciable items.
For more information we recommend the Australian Tax Office website (http://www.ato.gov.au/individuals/content.aspx?doc=/content/62426.htm)