It is nearly that time of the year again when Australians prepare their tax returns. Always consult with your Accountant on how to best prepare for your tax return.
Some of the below tips may assist you, whether you are an experienced property investor or new to the market.
What can you declare:
When you lodge your tax return, you need to notify the Australian Taxation Office (ATO) how much rent and rental-related income you received. These include:
- Rent payments
- Any amount a tenant pays you to cover the cost of repairs for which you then claimed a deduction
- Insurance pay outs
Your Property Manager will have your end of financial year statement available showing a breakdown of income & expenses for the financial year.
Expenses:
As a property investor you can claim certain deductions for several expenses whilst your property has been rented or available for rent. Some of these include:
- Management costs
- Body corporate fees and charges
- Maintenance
- Interest expenses
- Insurance
- Depreciation
- Rates and water charges
- Land tax
Know what expenses not to claim
Make sure you don’t claim any deductions that aren’t deductible, such as expenses someone else has paid e.g. electricity bills paid by your tenant.
Save your records
The Australian Tax Office requires property investors to hold on to their records such as their purchase contract, all documents relating to capital gains tax, financial records and evidence of any expenditure on property improvements.
For all your property management needs please feel free to contact
Stacy Matthews Realty anytime 0473 383 354 or email admin@stacymatthewsrealty.com.au.