Wow, it’s June 30 already! This year has flown by and that means tax season is upon us, which can cause some stress for all of us, including property investors. However, it’s also a great time to claim back a few investment related expenses incurred throughout the financial year. To help you out, here are some important things you need to have in your tax time checklist:
Rental Income Earned
- If your investment property is managed by a professional property manager, then ensure they have provided you with your monthly rental income statements. These statements will include your rent, insurance payouts, reimbursements and any other property related income you may have received. They will also include any expenses the property manager has paid on your behalf, including their monthly fees;
- If you manage your own investment property, then ensure you have the following to hand:
- Evidence of all income received;
- Evidence of all property related expenses you have paid.
Interest Charged on Your Loan
You can generally deduct the interest incurred on any finance associated with the purchase of the investment property.
In certain circumstances, you can claim deductions for interest on loans relating to purchasing the property and/or property maintenance and improvements. Whether the interest is deductible in the year it is paid, or is deductible over a number of years (depreciation) will be a matter for your accountant to consider. Your job is to ensure you have all your receipts in one place!
Importantly, you should ALWAYS seek professional accounting advice in relation to the deductibility of any investment related expense.
If you would like to know more about preparing your investment property expenses for tax time, or if you are interested in entering the property investment market, get in touch with one of our experienced brokers today.