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June 30 is less than two months away. Have you considered your tax position for this year? Perhaps it’s time to visit your accountant to see whether investment decisions now can improve your tax position.
If you have capital gains to off-set, it may be an option to pre-pay interest on your investment property before June 30. Consider major maintenance projects, repairs, gardening etc in order to claim these in this financial year. These trades can take time to organise so leave yourself enough time to get quotes and find tradespeople at a busy time of year.
Depreciation of plant and capital allowance on building and improvements are two major tax deductions for property owners.
Depreciation of plant is available on all investment properties. ATO Legislation allows all plant (such as air conditioners, whitegoods, carpets) to have a new effective life from settlement at various rates generally ranging from 5% to 20% per annum.
Depreciation allowances combined with additional negative gearing factors such as interest on a mortgage, repairs and maintenance can help investors reduce their taxable income, pay less tax and improve cashflow. The savings made can then be redirected to other areas, such as an investment mortgage or other debt reduction.
Professionals Real Estate Tax Depreciation by Deppro (a leading property depreciation company) is a specialist service to assist property investors to claim full tax entitlements from their investment properties.
For more information about depreciation, talk to your account or visit: http://sa.professionals.com.au/resources/tax-depreciation/ or please call 1300 888 489.