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.
Denne historien er fra May 2022-utgaven av Money Magazine Australia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 2022-utgaven av Money Magazine Australia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
