This week’s tip is for property investors preparing for tax time and claiming depreciation.
When preparing your tax return you will need to provide all your income and expenses to your accountant.
Quite often it is easier if we request the property manager to pay all the outgoings over the year. This includes repairs and maintenance, rates, water, etc.
The benefit of this is that all the receipts are in one spot, and the property manager can provide you with an end-of-year statement that can be forwarded to your accountant. This saves you time trying to calculate all the expenses yourself and is what I do myself for my investment properties.
If you are paying the expenses yourself, keep them recorded all in one spot so that it is easier to forward to your accountant and reduce any delays in processing your tax return.
Claiming depreciation on your investment property at tax time.
Depreciation is one great factor of having an investment property and it can be a massive difference to your cash flow.
Property depreciation is a tax break that allows investors to offset their investment property’s decline in value from their taxable income.
If you bought an investment property in the last 12 months or haven’t previously claimed depreciation, you will need to get a quantity surveyor to prepare a depreciation report.
This is a one-off cost and a one-off report. Your accountant can use this report to break down the deductions on a year-to-year basis.
If you would like to know more information purchasing an investment property reach out to me by clicking here to book a time to chat in my calendar.
Regards,
Geoff Tomkins
Buyers Advocate
GCT Property
PH: 0404 852 781
