Property Investment Tax Tips

Whether you are a first-time investor or a seasoned property guru, these basic tax tips can help not only make the end of financial year less painful, but also ensure you are maximising your return on investment.
 
Record Keeping – From the very start, the way in which you keep your investment records is crucial. These should be kept apart from your personal records in order to keep a close eye on your position. Income and expenses should be shown clearly and be backed up by receipts and reports from your Property Manager (if applicable).
 
Claiming Expenses – Ensure you keep abreast of the latest laws with regards to your rights and responsibilities as a taxpayer. Examples of the expenses you can claim include:
 

  • Interest on loans
  • Utilities expenses
  • Maintenance expenses
  • Depreciation of value of carpet, furniture and appliances and certain construction expenditure


Apportionment of Expenses – If your property has only been available to rent for a portion of the financial year, your expenses can only be claimed for that period. For example, say you live in the property for part of the year and rent it out for the rest of the year, the expenses outlined above are only claimable for the period in which the property was rented.
 
Always seek professional advice from your accountant or Australian Taxation Office to ensure you are compliant and to avoid costly mistakes.