Do you know all of the tax deductions you can claim on your investment property?
Tax preparation can be a nightmare, especially if you have more than one property. But, you can fight the stress with a few simple organisational strategies for your files:Assign each property a separate file. Find out every last tax allowance you are entitled to for each property, so you have a better idea about what documentation is necessary and beneficial to keep. Regularly update each file with recent documentation – don’t let it pile up.
To ensure you are getting the maximum allowable tax deductions, it pays to speak to your accountant. You may or may not be aware that all of the items listed below are approved tax deductible expenses:
While house and garden repair and maintenance jobs done on the property are an obvious expense that you can claim on your tax, did you know that overhead costs such as phones and vehicles can be deducted also?
If you have used your vehicle to perform maintenance tasks or look for investment properties you may be able to charge some pro rata vehicle expenses. Similarly, the cost of using a telephone, office space, stationery, internet and computer may be able to be deducted on a pro rata base as well.
Don’t forget that capital expenditure is tax deductible and should be shown in a Depreciation Schedule. Common depreciating assets include dishwashers, air conditioning units, carpet, curtains and blinds, hot water systems and pool filters and cleaning systems.
While some items depreciate over time, others can be depreciated during the year of purchase. If you know all of the details about the purchase of each item, your accountant can work it out but we advise employing a qualified Quantity Surveyor to prepare a professional Depreciation Schedule for you. They will produce a report that will give a detailed value of the deductions you are entitled to for each tax return.
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For further information about how to get the max from your tax, contact us now on 1800 690 890 and ask for Paul, or email firstname.lastname@example.org.