When it comes to your investment there’s more than one way to maximise your financial return. Increasing your rent and cutting costs may be the first steps to growth but knowing how to make the most of your return at Tax time can have the greatest positive impact on your finances.
It’s all about knowing what costs and services you can claim as a deduction. You never know we may have uncovered a few hidden ones that will make your day.
Management Fees & Leasing expenses
Most investors are aware that the fees you pay to Rent All for managing your investment are deductable, but did you know that the advertising charges you incur when finding a tenant are also deductable? Every little bit helps so check your statement closely for this one.
Body Corporate Levies
If your investment is part of a complex then it’s highly likely that your quarterly contributions are also deductable. One off levies raised for capital improvement are exempt, however every day administration and sinking funds are eligible.
Repairs & Maintenance
While there are some grey areas when it comes to maintenance, the general rule is if it’s a ‘repair’ its deductable in full, if it’s a replacement then you may be able to claim capital works deductions for the expense. Keep track of your repairs and replacements throughout the year to make the most of these deductions.
Council & Service Rates
Council rates and water charges are two more deductable expenses. It’s also a good time to speak with your Property Manager and check if your tenants are paying for their water usage throughout the year. If not that’s a clear area to assist with your investment’s cash flow rather than waiting until Tax Time to recoup these charges.
Building, Contents and Public Liability insurance are all deductable as part of your expenses in maintaining an investment property.
Often needed when tenants vacate a property, cleaning expenses can be that unexpected cost that hits the hip pocket when you least expect it. The good news is that this service is yet another that can be claimed come the end of financial year.
The list of rental deductions is nothing short of extensive. There’s so much more than what we’ve listed above and to help make your life easier we’ve uploaded a copy of ‘Rental Properties 2011’ from the Australian Taxation Office for your perusal.
Maximise your return this year by speaking with your accountant and making the most of your available tax deductions.