Tax savings on property investment.
Most property investors are aware of the substantial tax savings on property investment that can be legally claimed against the costs of holding an investment property. This is the time of year when most property investors are reconciling their expenses on investment property to send to their accountants in order to receive the substantial tax refund they are probably now due.
It’s also the time of year that the Australian Tax Office issues statements about the type of deductions they will not consider and also deductions that are sometimes claimed and will not only be refused but may also result in fines! You can read more about this below.
It is timely to remind current property investors that they should also have tax variations in place for this financial year. Too often we come across clients who are finding their new investment property is eating into their monthly cash flow and finding that the investment property they now have is affecting their lifestyle. To be ‘loosing’ or spending an ‘extra’ maybe as much as $1000 per month on an investment can drain resources! This ‘loss’ is then magically returned in the form of a large tax reimbursement of around $14,000 come August or September after submitting their annual tax return. Of course it’s great to get this lump sum but better to get the extra $1000 or so each month in your pay packet rather than having to wait 12 months to claim it back. This is what a TAX VARIATION can do for you and it is highly recommended that you have your accountant put one in place for you now if you haven’t already done this.
The list of the top 5 dodgiest deductions became claimed this year are described as,
- Transportation of ‘bulky goods’ that can be stored at work
- Holiday travel that is not work-related
- Fake attendance at a ‘work’ conference
- Car-related travel that there is no proof of
- Rental deductions with no valid basis
Basically if you don’t own an investment property, and you want to know more abouit tax savings on property investment, have a look at our FAQ’s – “What is negative gearing and how does it work” click here https://propertyinvest.co/property-investment-frequently-asked-questions-faqs/
For more information on dodgy deductions, read more: http://goo.gl/q833rr
