With the end of financial year just a few weeks away, the team at Hot Property Management wanted to share with you some tips on how to maximize your potential tax benefit this financial year, but first the disclaimer these are just some ideas, please remember to speak with your accountant prior to implementing any of these as they may not all be applicable to you.
So first up the best way to maximise your tax refund is to know what is deductable, here is a check list that provides you a bit of a guide of things to consider:
- Council and Water Rates
- Bank fees
- Strata Levies
- Interest on loans
- Agent statements
- Borrowing costs (eg. Mortgage insurance, application fees etc)*
- Repairs and Maintenance
- Depreciation and Special building write off*
- Travel expenses
- Land Tax
- Renovations or improvements you have made to the property*
*Some of these points are not eligible for an outright tax deduction but may be depreciated over a period of time.
One of the key things we often suggest to clients is a depreciation schedule, which is where quantity surveyor is engaged to undertake a report to calculate your depreciation, we work with a company that offers our clients a discounted rate on these depreciation schedule’s and they are essential to getting the most out of your investment portfolio.
Another suggestion is to discuss with your accountant the option of paying interest in advance, perhaps paying a lump sum of interest before the end of this financial year will give you some added benefit?
We have all heard the saying, it takes money to make money and as it comes to the end of the financial year investors should seriously consider undertaking any repairs and maintenance in order to obtain that Tax benefit as soon as possible. little things like having your annual pest inspection, or perhaps servicing Air conditioning units, All these works will prolong the life of your investment property and assist in its future performance.
To discuss attending to these items for your property, contact the team at Hot Property Management today 07) 3170 3760