Rental Property Owners – Increase Your Tax Refund

June 22nd, 2013


Rental property owners – increase your tax refund

Only 2 weeks left till the end of the financial year.  If you are a landlord and you haven’t done so already, now is the time to get your accounts in order and look at bringing some of your expenses forward so you can increase your tax refund.

Here are my top tips to increase your rental property loss and receive a higher refund:

  •  Prepay up to 12 months insurance in advance.
  • If your rental property is a considerable distance from where you live, consider bringing forward any routine inspections or trips to undertake property repairs to increase your travel claim prior to 30 June.  
  • If you pay a real estate agent to look after your property, check to see if there are any expenses that they can bring forward such as paid inspections.
  • Deferring the collection of rent may not be an option for everyone.  For those of you that can make this work, its certainly worth considering.
  • Was your house constructed post July 1985.  Has your house had any major additions added since July 1985 such as pergolas or extra rooms. If you answered yes then obtaining a quantity surveyors report may allow you to access greater deductions for depreciation.  If you think you may be eligible and you haven’t already obtained this report, it is imperative that you speak to your accountant now.  You still have time before June 30.
  • Is your property due for a pest inspection.  If so get it done now.
  • Get your tenant to give you a list of any little problems that could potentially become big problems in 6 months time and fix them NOW.  Remember, small replacement assets costing less than $300 (or $600 for a jointly owned property) can be claimed outright in the year they are purchased.
  • Pay any outstanding rates, water and land tax prior to June 30
  • If you have a mortgage over your property, then you can pay up to 12 months interest in advance and claim it as a tax deduction.  Clearly this option requires the landlord to have extra money at hand so it will not be for everyone. 


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