With the main goal of a Rental Investment Property being to
make money, tax depreciation and tax deductions will be the main income after
the rental payments received.
This is the year to do as much as we can to help your
Landlords with their investment property! All of us, no matter what we do for a
living want and need to make money and owners of investment properties are no
different.
The Australian taxation department and websites as well as
your state tenancy agency have some great information and of course your tax
accountants can assist. Here are some things to consider claiming and to
research further:
Costs for professionally managing the property such as
property management fees. While it is true that you need someone to help manage
your property, it does cost a lot. This can and should be claimed towards your
tax return. A professional Property Management company will supply an End of
Financial Year Statement to take to the accountant to make claims.
Improvements made to your home over the financial year. This
could be adding a patio, a garden shed, including security screens or
remodeling a bathroom. All of these expenses can be considered by your tax
consultant.
Insurance premiums to insure the property for both landlord
and building & contents insurances. These are necessary expenses so by
taking the policy and invoices to claim this will make a difference as it can
be very expensive. Things can and will go wrong and no-one can predict what it
will be or when.
Visits to your rental property can sometimes be claimed. If
you are visiting from a long distance, such as interstate, there can be some
tax relief for your trip. Your property manager can write you a letter to thank
you for your visit, outlining dates. Include the letter and proof of costs with
your tax documents and discuss this with your consultant.
Asking the tax consultant about Council rates, water charges
and anything else that is paid for the property. By being prepared and keeping
receipts we can be ready in the event of an audit.
Property managers should ask their Landlords if there is
anything that they require from them such as copies of their invoices and how
they can assist with arranging tax depreciation schedules or anything else that
can make their lives easier. That is why property managers are there, to help
their Landlords.
The last tip is that not all property managers are created
equally. Speak to other investors, see what they are doing in the community and
get a feel for their business. If you are having problems, it may be time to
look around.
Brenda Mitchell is a Head of Department for Property
Management at Harcourts Ashmore. In her 6th year of real estate, she is
passionate about the industry and strives to find innovate ways to support her
investors to increase their return on investment. Contact Brenda at
brenda.mitchell@live.com.au or by Facebook
https://www.facebook.com/brendaleemitchell1971
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