With property investors looking at changes to the tax laws as the Pandemic evolves, there is still good reason to hope for the future. This is because property investment is not short-term, but rather a long-term commitment that will experience many changes along the way.
As the end of the financial year draws near, Accord QS is here to provide advice and insight for those who are considering becoming Sunshine Coast property investors. With June 30th around the corner, worries about possible tax hikes and other issues may cloud your judgement as to what actions are the right ones to take.
One such issue is finding ways to lower your taxes for this year which may reduce what you pay next year as well. With new tax rules that may start applying on July 1st, here are a few tips that will help lower the taxes you pay today.
Prepaying the interest on your investment loan is a simple way to get a tax deduction. The only downside is that if interest rates are on their way down, you may lose money in the process. You’ll want to look over the information that is available, such as the Rental Properties Guide from ATO. This will explain what you can and cannot claim.
From the carpets in your home to the garden gnomes that sit in your yard, your property may be filled with tax deduction possibilities. Getting a depreciation report may be the best money you spend as a property investor since you might be able to save far more on your taxes. Even the report itself is tax deductible, although keep in mind that second-hand deductions are no longer allowed. Contact Bobby for clarification.
This is the time to look over your property, make the necessary repairs, and do some maintenance to keep things tidy. Even adding a coat of paint can be deducted for your taxes which are assessed at the end of June. By waiting until July 1st, it will be another year before you can experience the savings.
For property investors who have residences, paying the insurance premiums on your landlord insurance should be done before the end of June. If you pay the full amount, you may receive substantial discounts compared to paying it a month at a time.
Another thing to keep in mind is that COVID-19 is a cycle, the incentives on the capital gains tax and negative gearing tax, the changes themselves will be around for a long time into the future. This means that to avoid penalizing the property investor, they may be grandfathered into the system. You can still expect the government to make some changes, however Tax Depreciation is a long-term strategy. Bobby from Accord QS is the expert tax depreciation specialist on the Sunshine Coast and offers sound advice for those who want to pay less on the property taxes. For home and business owners along with property investors. Contact Bobby. The tax depreciation expert on the Sunshine Coast.
For Property Depreciation and Tax Allowances on investment properties please complete the information worksheet relevant to your property type. Submit online or print and fax.
Our fees are tax deductible as an expense and a receipt is included with your report.