End of fi­nan­cial year tips

Central and North Burnett Times - - DOMAIN -

THE end of each fi­nan­cial year means pa­per­work for peo­ple who have in­vested in prop­erty and there are traps you will need to avoid.

“Know­ing what ex­penses can be claimed over the short and long term can make a big dif­fer­ence to a tax re­fund,” Mort­gage Choice spokes­woman Belinda-Wil­liamson said.

“In prepa­ra­tion for lodg­ing a tax re­turn, now is a good time for prop­erty in­vestors to or­gan­ise any re­ceipts and state­ments that re­late to their rental prop­erty or properties.”

She said there were a range of ex­penses that could be claimed as tax de­duc­tions that may have slipped your mind. Th­ese in­clude: Agents’ fees Ad­ver­tis­ing Body cor­po­rate fees Cap­i­tal ex­penses Build­ing main­te­nance and re­pairs Clean­ing; in­sur­ances Home loan fees and in­ter­est pay­ments Coun­cil and wa­ter rates Cost of travel to and from the prop­erty for in­spec­tions

“One as­pect that prop­erty in­vestors of­ten over­look when lodg­ing their tax re­turn is de­pre­ci­a­tion de­duc­tions,” Ms Wil­liamson said

“De­pre­ci­a­tion ap­plies to new and ex­ist­ing res­i­den­tial properties and in most cases own­ers of an in­vest­ment prop­erty or properties are likely to be able to claim some­thing.

“De­pre­ci­a­tion on the orig­i­nal costs of con­struc­tion can be claimed on any res­i­den­tial prop­erty built af­ter July 17, 1985, how­ever it is al­ways a good idea to check with the Aus­tralian Tax­a­tion Of­fice or a de­pre­ci­a­tion spe­cial­ist as there may be ex­cep­tions to this rule.

“Claims can also be made for items that are fall­ing in value over time, such as fix­tures and fit­tings, floor cov­er­ings, ap­pli­ances and built-in wardrobes.”

MsWil­liamson said own­ers in strata build­ings should keep in mind that they may be able to claim de­pre­ci­a­tion on a por­tion of the value of items and equip­ment in com­mon ar­eas, such as car­pets and fur­ni­ture in foyer ar­eas.

“Each in­vestor’s sit­u­a­tion is dif­fer­ent and for this rea­son it is im­por­tant to con­sult a fi­nan­cial plan­ner and/or ac­coun­tant to help de­ter­mine any tax de­duc­tions,” she said.

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