Tax time for property owners
Tax season can be time consuming if you're a property owner, but proactive planning can make the process easier. While tax advice is best left to the experts, property owners can benefit from guidance that saves money and reduces stress. A little extra prep work during the year will make tax time smoother.
Claim all deductible expenses
Want to keep more money in your pocket? It all starts with good record-keeping. You can claim plenty of expenses related to your property, including:
- Advertising for tenants.
- Property management fees.
- Maintenance and repairs.
- Interest on loans used to purchase the property.
- Utility bills (if you’re paying them).
The key is staying organised throughout the year. Accounting software or a basic spreadsheet can be your best friend here, helping you track your expenses so you’re ready when tax season arrives.
Understand negative gearing
Negative gearing might sound technical, but it’s simple enough. If your property costs (like loan interest and maintenance) are higher than the rent you earn, you’ve made a loss. That loss can reduce your taxable income.
Chat to your accountant or financial planner if you'd like more info on how this works. .
Maximise depreciation deductions
Your property’s assets, like appliances, carpets, and blinds, lose value over time. That’s where depreciation deductions come in. You get to claim back some of that lost value as a tax deduction.
The easiest way to make sure you’re getting the most from these deductions? Hire a qualified quantity surveyor to create a tax depreciation schedule. They’ll help you unlock every eligible claim.
Leverage the tax benefits of a maintenance fund
A maintenance fund isn’t just handy for unexpected repairs—it can also help reduce your tax bill. Contributions to the fund are often tax-deductible, so you’re staying prepared and saving money at the same time.
Think of it as a safety net for your property and your wallet.
Keep an eye on your rental yield
How’s your property performing? Your rental yield is a great way to find out. Checking it annually helps you stay competitive and make sure your property is pulling its weight.
If your yield is on the low side, consider adjusting the rent or making improvements to increase its value and income potential.
Get expert advice
When it comes to taxes, sometimes it’s best to call in the pros. A good tax advisor can guide you through the ins and outs, help you find every deduction you’re entitled to, and make sure you’re staying compliant.
And don’t hesitate to ask your property manager for recommendations. Their experience can be invaluable when choosing the right experts to work with.
A friendly Kolmeo disclaimer: While we strive to provide helpful resources, this article is for general informational purposes only and should not be considered a substitute for professional tax advice. When it comes to managing your tax obligations, we always recommend consulting with a qualified tax advisor or accountant to ensure your specific circumstances are properly addressed.