1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar




Property News

Plan ahead for tax benefits

July 02, 2012

As we roll over into a new financial year, property investors should make plans for the coming 12 months of property repairs and maintenance so the schedule is complete prior to  30 June 2013.

 

 

There are a number of tax benefits that property investors should become familiar with so that they make the most out the financial benefits of owning an investment property.

 

‘Repairs and maintenance’ is just one example where property investors may be able to use these expenses in order to receive tax deductions*.

 

Plan the improvements you will make to your investment property in the coming 12 months.

 

These improvements may not only help achieve a higher rental income or increased demand for your rental property but also mean you may claim the cost of undertaking such work against your taxable income.

 

If you’ve been putting off painting your property or putting an air conditioner in or adding an awning to a courtyard, this year may be time to address these jobs.

 

Depreciation schedules are another must for property investors to ensure they make the most the financial incentives of owning an investment property.

 

Seek advice and assistance from professionals such as qualified property depreciation specialists to undertake a depreciation schedule prior to the end of each financial year.

 

Common deductions on investment properties include:

 

  • Advertising costs for tenants
  • Real estate agent management fees
  • Insurance - building, contents  and public liability
  • Council rates
  • Interest on loans used to finance the rental property
  • Gardening, repairs, maintenance  and pest control
  • Travel costs to inspect the property

 

*For more information on what you can claim as a deduction for residential property investors visit the Australian Taxation Office website, www.ato.gov.au.

Related Articles

Winter investment property checklist

If you own one rental property or many, it’s important to keep them in good condition. That ...
read more

3 things you need to know as a property investor

Knowledge is important Entering the world of investment property is certainly exciting, but ...
read more

Why become a Rentvestor?

LJ Hooker recently surveyed rentvestors to find out why they chose the strategy as part of their ...
read more

Latest Articles

3 things you need to know as a property investor

Knowledge is important Entering the world of investment property is certainly exciting, but ...
read more

The evolution of the Rentvestor™

Since the emergence of the Rentvestor™ trend in 2013 this burgeoning investment strategy has ...
read more

What 'Brexit' means for the Australian property market

What is Brexit? A non-binding referendum which asked British voters the question “Should ...
read more