The end of the financial year is a little over a month away which means its time to get all your paperwork in order. We asked Custom Financial Solutions mortgage broker and all around financial whiz Maryanne Northcott to give us her expert advice on what we should be claiming.
Never overlook claiming depreciation expenses. This deduction involves claiming expenses for deterioration on fixtures and fittings each year and can range from carpets to cupboards, Maryanne says. She added that a lot of investors forget about claiming for garden and lawn maintenance, insurance and some travel expenses too.
What about renovations and extensions? You can claim on those, right? Not necessarily, says Maryanne. Generally any expenses that are not related directly to the investment property cant be claimed so be sure to check with your accountant first.
With some research suggesting that only 20% of property investors fully utilise the available tax depreciation benefits from their investment property, getting the right advice and guidance is paramount.
Always seek expert advice from accountants and financial brokers prior to property investment, Maryanne says. This ensures that you know what deductions you can claim and also that the loan is set up correctly to maximise these tax deductions.
Here are Maryannes top 4 tax tips:
- Make sure your loans are set up correctly
- Have a depreciation schedule drawn up
- Keep expense receipts for five years
- Use an accountant that specialises in investment property tax
Do you have any questions about your tax time preparation? Leave a comment and let us know how we can help.