How do I claim maximum deductions on my residential investment asset? This is one of the most important factors to any property investor. Naturally, you want to get the most out of your investment over time, which includes any and all wins that come your way.
At Ray White West End, we are passionate about helping people achieve optimal outcomes, whether they own one residential premise or an entire portfolio. Continue reading to learn more about making claims for now and into the future.
Renting out a property in Australia means you are eligible to claim certain tax deductions. The Australian Tax Office (ATO) states that you can make deductions only for those “that relate to the income-producing use of the property”.
Some of the typical deductions you can make now in 2020 (in the income year you incur the expense) include:
It’s important to realise that you can also claim deductions over several years. As a general rule, this usually applies to larger sums or expenses that have terms which exist over a longer period of time, such as loans.
These types of deductions can include:
There are conditions set by the ATO that apply to the expenses you claim based on your income-producing activities, ie. costs associated with leasing your premises.
Some of the elements that should be assessed include:
This assessment process can be complicated when you don’t have the right guidance. For peace of mind, we can direct you to our professional partners.
Depreciating your investment property using tax depreciation principles is a highly effective approach for claiming maximum deductions at the end of each financial year.
This comprises several key terminologies that go into your calculations and record-keeping:
Making an investment property tax claim typically involves the following:
You may find it beneficial to know that at Ray White West End we partner with BMT Tax Depreciation Quantity Surveyors, who are tax depreciation specialists. Keep in mind, if you’re seeking more resources to aid you along your property investing path, you can check out our other resources in this series.
We can arrange access for a quote on your property through the tenancy so that you are on your way to claiming the accurate maximum deductions in relation to your specific assets. Call our friendly and professional team at Ray White West End on (07) 3844 4244 today.