As the year progresses, we arrive to a very important time, and as a landlord, you should know what claims are available at the end of the financial year. Now is the time to consider what is required to comply with regulations as well as maximising returns.
Items that can be claimed:
- Accounting fees
- Advertising
- Agent fees
- Bank charges
- Body corporate fees
- Borrowing expenses
- Cleaning
- In-house audio and video
- Interest expense
- Lease preparation
- Legal costs
- Mortgage discharge expenses
- Mortgage insurance
- Postage, stationery, telephone calls and rental
- Pre-payments
- Quantity Surveyor report
- Rates
- Repairs and maintenance
- Security
Expenses that you cannot claim:
- Property purchase costs such as stamp duty
- Expenses the tenant has paid
- Renovation costs for newly purchased properties, however these costs can be claimed over the years as they are not claimable immediately.
Paperwork your accountant will need to prepare your return:
- Bank Statements: for property related accounts, such as income and expense accounts and loan accounts
- Invoices and receipts relating to your property expenses
- Insurance documents outlining your insurance premiums
- Statement of income and expenses from your property manager
- Rates notices
- Tax deprecation schedule (Quantity surveyors report)
A helpful tip to make this a streamline process is to download and save every bank statement, invoice, or receipt in relation to your property in a designated file every month so that at every end of financial year you can easily send these files to your accountant.
Tax depreciation:
Depreciation is your second largest deduction claim on your investment property after interest. A tax depreciation schedule should last 40 years and include both the diminishing value method and the prime cost method. The report will identify each year, from the date of purchase, the total tax depreciation claims available to the property investor.
If you would like our office to arrange a depreciation schedule for your property, please email casey@c21newcastle.coom.au and we can arrange our partners at MCG Quantity Surveyors to complete at a special rate of $660 inclusive of GST. For more information click here: https://c21novocastrian.com.au/tax-depreciationc21novocastrian.com.au/tax-depreciation
Free download- Tax time check list- https://c21novocastrian.com.au/_files/pdfs/end-of-financial-year-checklist.pdfc21novocastrian.com.au/_files/pdfs/end-of-financial-year-checklist.pdf
Have more questions about your Newcastle investment property? Want to ensure you are maximising your returns? Why not see for yourselves the difference a dedicated team of property managers makes? For a free copy of our Property Investors Guide or for an obligation-free chat, email our Director, Casey Healey on casey@c21newcastle.com.au or phone 02 4928 7400 today.