Top Tip Tuesday – Investors and Tax time
Welcome to our Top Tip Tuesday
With End of Financial year upon us the ATO have provided the following 5 Tax Time Tips.
Being tax-smart when investing in property means more than making the right property choices.
If you use your property to earn income at any time, you will have tax obligations and entitlements.
So here are the 5 Tips for Owning a Investment property at tax time:
Tip 1 – Include all your rental income in your tax return
Tip 2 – You can claim immediate tax deductions for things such as: loan interest rates and taxes, including council and water rates and land tax
property management fees, insurance, body corporate fees, cleaning and gardening, repairs and maintenance relating to when your tenants were living in the property
Tip 3 – You can claim tax deductions over several years for things such as: capital works, otherwise known as building costs borrowing costs
Tip 4 – When lodging your tax return make sure you: include all your rental income, only claim deductions for periods that your property is rented out or genuinely available for rent. Don’t claim deductions for periods that you use the property yourself – this is especially important for those like myself with holiday rentals
Tip 5 – Scan copies of your receipts to make it easier to store and access them. Cloud based platforms such as iCloud, Google Drive, Drop Box
Remember: keeping proof of all your income, expenses and efforts to rent out your property means you can claim everything you are entitled to. Having a great property manager on your side can help with having many of these items already accounted for with the end of year statements.
If you would like to know more about how Q State Properties could assist you please give me a call on 0438 762 163.