Investment Property Taxation. Are you paying more tax than you need to?

Would you like to make more money from your investment property while paying less in taxes? Steer clear of tax avoidance at all costs, but no one wants to pay more tax than what is necessary.

Minimising your tax obligations is an effective way to contribute to bottom line returns and can be the difference between a cashflow positive or negative property.

Are you already accounting for all the costs you incur as a result of running your rental?

Consider the following:

Depreciation on chattels such as driveways, carpets and appliances;

Insurance and rates for the property;

Is your interest fully deductable as an expense? This in itself could be an entire blog post. If your interest is not fully deductable, and particularly if you are more highly leveraged, it is worth considering some of the exemptions to the interest deductability rules such as new builds or social housing;

Tax deductions for running a home office including mortgage interest rates, rates, power and insurance;

Telephone and internet expenses;

Travel expenses related to fuel costs and car depreciation;

Memberships to property investor groups;

and subscriptions to professional development materials related to property investment.

To plan wisely for your tax obligations and to make sure you stay within the rules, consider talking to a knowledgeable property accountant. If you would like a personalised recommendation, reach out to me and I’d be happy to make an introduction.