If you have an investment property and you earn an income from it, you are able to claim a deduction for expenses incurred related to earning the income.
The best way to start your tax return with your investment property is to claim correctly and know your deductions. You should already know by now that the three rules of deductions apply.
- You need to have spent the money
- It must be related to you earning the income
- And you must have a record to prove it.
What should you do?
My advice would be to always start with your tax agent. They should know exactly what you need and what deductions you can claim. If they don’t, come visit us in South Perth and we’ll sort it out for you.
The next best step is working out your expenses. Once you are aware of all money spent, you can start working through which deductions you can claim.
Know your deductions
Some deductions include;
- Advertising for tenants
- Real Estate Agent fees
- Bank fees on accounts where deposits of rent and expenses are paid.
- Cleaning and upkeep of the property – including pest control.
- Council rates & Water Rates
- Cost of travel in relation to the property – Inspections, Home opens.
- Mortgage interest
- Repairs and maintenance
Going into to the new financial year, it’s important to take note of tax obligations relating to your investment property. Here, at Forward Focus, we strongly recommend tax planning to benefit from possible deductions. If you need to know a bit more information, feel free to contact us on (08) 9474 6333 to discuss how we can help.