In today’s video, we will be delving into the world of tax saving strategies for property investors. Whether you’re a seasoned investor or just starting out, these tips can help you maximize your tax savings and make the most of your investment.
1. Capitalize On Depreciation
If you have recently replaced items in your property, such as carpets or air conditioners, there are a couple of ways you can claim the depreciation. You can either spread it out over several years or choose to claim it all in one year.
Opting for a one-time claim can significantly increase your tax savings in the initial year.
2. Consider Prepaying Expenses
Take property insurance, for example. Instead of paying monthly premiums, consider paying a lump sum upfront. By doing so, you may be eligible for a better tax deduction in the current financial year.
3. Keep Meticulous Records Of All Your Property Expenses
If you’re utilizing a property manager, they often handle many expenses on your behalf, including repairs, rates, and insurance.
One of the benefits of having a property manager is that they maintain detailed records. When they provide you with an end-of-year financial statement, it already includes those accounts and expenses.
Remember, maintaining thorough record-keeping is essential for any investment property.
4. Ensure You Have A Dedicated Property Depreciation Report
If you haven’t obtained one yet, get in touch with a quantity surveyor who can prepare a depreciation report for your property.
Typically, this report is only required at the time of purchase. However, if you have made substantial updates or improvements to the property, it might be worthwhile to get an updated depreciation report.
Your accountant can then utilize this report to maximize your tax savings on the property.
5. Have An Accountant Experienced In Property Investment
When selecting an accountant, consider their experience with property investors. Ask them about their beliefs regarding property investment and inquire about the strategies they employ to maximize tax savings for their clients. A competent tax accountant is indispensable in this process.
I hope these tips have provided valuable insights into tax-saving strategies for property investors.
If you would like to discuss these strategies further or have any questions specific to your investment goals, I invite you to book a strategy call with us. You can book a time to discuss further by clicking here.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
