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Tuesday, 12 July 2016 02:09

End of Financial Year Tax Tips

Having a good accountant is critical to any investors wealth creation journey. If investing in property, it’s hugely important to use an accountant that’s clued up on all the taxation intricacies involved in property investing.
 
Many of you know that I’m an avid posted on the online forum www.propertychat.com.au/ - it’s a great resource for property investors. Whether you’re starting out or have been investing for a while – there’s something for everything.
 
It was on PropertyChat that I became super impressed with Paul Gerrard’s taxation advice. Like myself – he’s a bit of a forum addict and provides a number of contributions to the forum on taxation matters.
 
Given that the new financial year has begun I thought it would be worthwhile sharing some of Paul’s taxation tips for property investors.
 
· Do you have a Depreciation Report? If not, you may literally be throwing away tax deductions. While properties build after 1986 can claim depreciation and capital allowance deductions, it is not uncommon for even a 100-year-old property to have deductions worth seeking.
 
· Need to replace an item or repair something? Repairs can be bought forward and may be deductible. However not all replacements are repairs, eg a new appliance. These may need to be depreciated. But the old one could be written off.
 
· Have you considered a PAYG Variation? A PAYG Variation allows you to reflect your expected 2017 tax refund now and apply for reduced tax on wages. This can really help cash flow.
 
· Do you have the right loan structure in place? Some investors think they do but didn’t use a specialist broker. A specialist broker will guide you on how to avoid cross collaterising properties. They’ll be familiar with certain niche lender policies and have a good understanding of how to structure complex deals. They will also aim to get you a competitive deal.
 
· Remember the following may be deductible if you own a rental property

          - Travel to inspect the property / meet agent etc

          - Materials and costs for replacement items (but not your labour)

          - Borrowing costs if you refinance or break a fixed rate loan

          - Investor seminars and courses

· Prepay expenses. You can’t just pay in advance but can request to be invoiced early and when paid -  the deductions can be bought forward. Paying the July rates instalment in June may assist with an enhanced refund.
 
If you have any questions at all in regards to taxation matters – please get in touch with Paul. His details are provided below. If you mention you’re a Pass Go client, you’ll obtain a discount on their normal rates.
 
Also – your first consultation is free and without obligation. While Paul is Sydney based – his clients are all over the country. Everything can be done via email/phone.
 
Paul Gerrard
Accounting & Tax Manager 
Price Accounting Services Pty Ltd
www.pricefinancial.com.au
Unit 11, 1 Central Avenue
Thornleigh NSW 2120
Ph 02 9875-2444
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

About the author: Jamie Moore is an active residential property investor and owner of Pass Go Home Loans. If you’d like to have Jamie provide advice on your finance structure and investment strategy, simply complete and return this FORM and he will be in touch - this is a FREE, no obligation service. This information is of a general nature – please always consult taxation professionals about the specific nature of your situation.

Pass Go Home Loans Pty Ltd
Canberra, Australia
This email address is being protected from spambots. You need JavaScript enabled to view it. | www.passgo.com.au | 1300 656 299

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