Thursday, June 23, 2016

End of Financial Year… It’s Tax Time!

We all know it's tax time when the End of Financial Year sales hit the airwaves! This is always a busy time for many organisations and businesses as they work to ensure everything is in order before the new financial year clicks over. For investors, heading into the new financial year this year however, is a little different. There is uncertainty as to the tax implications surrounding negative gearing, and investors across Australia will be eagerly awaiting the outcome of the July election to see what the future holds.

Despite the election, landlords can still make the most of the lead up to June 30 and look to claim a range of tax benefits available to their rental property or portfolio. Areas for investors 
to consider are:

Depreciation schedules. 
The average amount that can be claimed on your property, in the first year, ranges between $4,000 to $15,000 - so this is definitely worth looking into! Depreciation benefits can apply to the dwelling alone or individual items within the property such as hot water units and air conditioners.

Uncompleted maintenance items. 
This is the best time to arrange any last minute repairs to your property, or replace any items you might have been putting off to ensure they are considered in FY15/16.

Getting ahead. 
Some investors take this opportunity to prepare for the year ahead by pre-paying expenses such as water and council rates.

Capture everything. 
Having a look back through all of your expenses from FY15/16 to ensure they're included is key. Remember, if you are an interstate investor, you can look to claim travel expenses when visiting your investment property.

As we head into the new financial year, despite the uncertainly on negative gearing, there is still some planning that can be done. If you would like to know more about what you could be doing in the race to June 30, be sure to chat to your property manager. As agents, we are in the prime position to help you out, or point you in the right direction.

Happy New Year!

Suzannah Toop

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