25 Feb 2021
Mortgage Repayment Calculator: Three Things You Should Know
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It’s that time of the year again, TAX TIME! Whether you’re a new property investor getting ready to lodge your investment tax return for the very first time or a seasoned investor with experience, it is always handy to have a checklist to ensure you’re claiming the maximum tax benefits.
Here are some handy tips to help you get organised and claim all the deductions you’re entitled to:
Now is the time to make those small last minute repairs and deal with maintenance issues you’ve been putting off all year. Do them now so that you can claim the cost as a tax deduction in this financial year. That could make a significant impact on your cash flow.
How much rental income did you receive and how much did you spend on servicing the mortgage, including interest repayments, insurance and maintenance? Take stock and examine all your costs and decide on what you need, where you can make cuts or get a better deal.
Get your rental property visits done before June 30th so that you can claim back the cost in this tax year. You need to keep a log book recording your journeys and ensure that if combined with work or holiday trip, you make a note of the proportion of expenses that relates specifically to the rental property visit because that’s all you can claim.
Generally, appliances and equipment such as dishwashers and hot water systems depreciate over time, so if you buy an item in June, you will only be able to claim a fraction of what you have spent. If possible, put off any major purchase until early in the financial year.
Make sure you know what you can claim back in relation to the investment property and keep your receipts and documents. Some of the expenses you may be able to claim include:
Missed deductions add up. Finding the right tax accountant who is up to date with the laws related to property investing can be invaluable for any property investor. Check their level of experience and expertise; they should take the time to explain all related claims and be happy to answer your questions.
Use this year’s learnings to prepare and make the most of next year. Think about what you can do better in preparation for next year, including a better filing system for all your receipts and documents, detailed records of rental income and expenses.
Preparing for tax time can be daunting for anyone, but even more so for property investors. As a property investor, there’s so much more to consider when filing a return. We hope you find these tips helpful in understanding how to go about your tax return.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home or investment property, you can contact us for information about the best options for you when it comes to your mortgage.