1. FIND A GREAT ACCOUNTANT
Finding a great accountant is number one on the list as this can be the difference between thousands of dollars in savings. As an Investment Property owner, you need someone aware of everything you can claim and who will go the extra mile. Sometimes paying more for an accountant can be advantageous.
2. DEPRECIATION SCHEDULE
For many Investors, not organising a Depreciation Schedule is a common mistake. By having this completed, you unlock thousands of dollars in savings. Essentially, if you want to pay less tax, Investors need to have this done.
3. WHAT RENTAL EXPENSES CAN I CLAIM?
• Management costs (e.g. property agent fees and commission)
• Body corporate fees and charges
• Maintenance costs (e.g. cleaning, gardening, pest control, repairs and maintenance)
• Property loan interest expenses
• Insurance (e.g. building, contents and public liability)
4. RECORD KEEPING
It is extremely important that when tax time approaches you have all your records, receipts, etc. in place and ready to provide to your accountant. As a valued client of Running Property, you will receive a full Financial Year Statement, this will provide a breakdown of your expenses and income for the financial year. Providing this to your Accountant makes their job much easier.
5. KEEP UP TO DATE WITH CHANGES
Just because your accountant lets you claim something last year doesn’t mean you will be able to claim it again this year. The ATO regularly makes large-scale changes to its legislation on permissible tax deductions, so you should make a habit of checking for updates on the collection agency’s website. For example, for a long time, investors were able to claim travel costs incurred whilst visiting their investment property on official business. But investors were stripped of this right when the law changed on 1 July 2017.