Savvy Australian property investors can save a large amount on their 2016 tax bill by deducting associated expenses.
Negative gearing allows property investors to claim any shortfall between their income and expenditure on an investment property as a deduction against their total taxable income.
Tax strategies that property investors may care to look at as June 30 approaches:
Refinancing your mortgage
Refinancing your mortgage usually incurs a couple of one-off costs and fees. Investors who are planning on refinancing their mortgage may care to consider doing so before June 30 in order to claim these costs as a deduction in the 2014-15 financial year.
Property investors who have sufficient funds to pre-pay interest on a loan can do so and claim the deduction in the current financial year. It is also possible to pre-pay (and claim a deduction for) your upcoming property insurance premiums.
Bring forward maintenance expenditure
If there are maintenance tasks that you know will need to be completed on an investment property, then you may wish to complete them before June 30 in order to minimise your tax bill in the current financial year.
Get a Tax Depreciation Schedule done
For many newer properties this report can enable you to save thousands in a tax a year.
Stay on top of your paperwork
Make sure that you are aware of the depreciations on any fittings or repairs, as well as any other costs you have incurred, for example, strata fees, management fees or rental losses.
Call Trinity Accountants today to discuss how to maximise your tax savings.