Stake your claim for a bonus

With the financial year ending, investors need to be on top of their paperwork

- Pam Walkley

Australians love property, and not just their homes. Many also see investing in property as a great way to build wealth.

If you're a landlord, the yearly tax claim is a way of maximizing returns. It's important to claim all you are entitled to, but it's equally important to get it right. Property investors are always on the radar of the tax office because we're talking big bikkies more than 1.8 million Australians owning rental properties claimed $38 billion in deductions in the 2019-20 financial year.

With the clock ticking down to the end of 2021-22, property investors still have time to make sure they score the maximum deduction possible:

1 Consider prepaying interest and other expenses before June 30 to claim the deduction in the 2021-22 year. This is particularly useful if you expect to earn less income next year; maybe you're going on maternity leave or plan to work less or even retire next financial year. Loan interest is the biggest tax deduction for property investors, according to the tax office, coming in at an average claim of $9640 for 2018-19. Other expenses you can prepay include the cost of a tax depreciation schedule, strata fees and insurance.

2 Make sure you have all your paperwork up to date. Every cent you claim must be substantiated by records. Doing this may also reveal some deductions you didn't know about.