Tax Time

taxt time clock

Are you ready?

Tax time is one of lifes certainties, and now is the time to start getting your tax information together and booking in to see the accountant.

To help maximise your tax refund, and bring you one step closer to buying your next rental investment property, here are a few tips:

  • If you are negatively gearing your property and consequently receive a sizable tax refund,
    consider varying the amount of “pay as you go” tax scale your
    employer deducts for your wage each pay period. This will not only smooth out your cash flow, but give you more money to spend throughout the year.

It is possible to prepay on your investment loan, and other expenses such as insurance and repairs. Use this strategy towards the end of the financial year to boost your tax refund

New landlords must provide their accountants the Solicitor Settlement Letter and the Establishment Documents of the purchase of their investment property. These documents contain tax deductible items such as loan establishment fees and mortgage insurance. If your investment portfolio contains shares and you have sold your investment property at a profit, this profit can be offset by any shares you may have sold at a loss during the financial year. Any property purchased before September 1985 is known as a ‘Pre-Capital Gains Tax Asset’, and DOES NOT attract the Capital Gains Tax. Worth
remembering if you have several properties and need to sell one.