2024: THE YEAR NOT TO MISS ANYTHING
PREPARATION IS THE KEY TO SUCCESS, START PLANNING FOR THE END OF FINANCIAL YEAR.
With June 30 looming we wanted to remind you that we all have 10 x days left to ensure we have maximised our claims for this financial year. To assist with this we have identified our top 10 areas you can claim to reduce your taxable income and to ensure nothing is missed.
A tax depreciation schedule (TDS) will reduce your taxable income and also identify all the depreciable assets in the investment property, allowing you to claim the wear and tear back as a deduction.
While every investment property and return are different, we guarantee that your total claimable deductions between capital loss and annual depreciation WILL BE 4 TIMES our fee in the first full 12 months of the report. If not, there will be no charge for our service.
A tax depreciation schedule will last you 40 years and the fee is 100% tax deductible. You pay once and we save you forever!
Remember our report commences when your tenant starts paying rent, not when we look at your property.
2. REPAIRS AND MAINTENANCESome maintenance expenses can be offset when you lodge your tax return, but other improvements need to be claimed back over a period of years. It is essential to understand the difference between repairs and maintenance, and improvements to ensure you are claiming correctly, speak to us here at Real Property Matters to understand the difference between repairs and improvements
3.INTERESTIf you borrowed money to buy your investment property, you are entitled to claim the interest component as a deduction. Additionally, if you require additional finance to upgrade the property (finance a solar system/air conditioning unit etc) then the interest component on the additional finance is also an allowable deduction.
4. BORROWING EXPENSESBorrowing expenses include loan establishment fees, title searches and filing the mortgage documents. The ATO outlines if your total borrowing expenses are greater than $100, the expenses can be spread over the next five years. If the expenses are under $100, you are entitled to deduct this amount in the year that payment has been made.
5. PROPERTY MANAGEMENTGood management of your asset comes with a cost! The fee that you get charged from your property manager is tax deductible and should be included in your claim.
6. LAND TAX AND COUNCIL RATESDon’t forget to include any land tax, council rates, and body corporate fees that you have paid throughout the year. Claim these expenses in the same year you paid for them.
7. PEST CONTROLWe all try to protect our investment properties, so that annual pest inspection is on the hit list and it can generally be claimed as an immediate deduction.
8. INSURANCERemember to include all your building, contents, landlord and public liability insurance in your tax claim.
9. LEGAL EXPENSESA property investor is entitled to claim any expenses involved in evicting a non-paying tenant, including taking court action for loss of rental income.
10. ADVERTISING COSTSIf you were required to advertise the property, the professional photos, printing and advertisement are all claimable and should be claimed in the year that the payment has been made.