Have you ever experienced the anticipation of a tax refund, expecting a nice little cash boost, only to find it falls short of your expectations?
Our Head of Consumer Valuations, registered taxation agent and property tax expert, Belinda Botzolis, dives into why returns are looking a little low this year and, more importantly, how property investors can get the most out of their tax returns.
The Tax Puzzle: Why is my return so low?
Taxes can often be like trying to solve a puzzle without all the pieces.
The end of the Low and Middle Income Tax Offset (LMITO) in 2022 means many taxpayers are experiencing an unpleasant surprise this year.
For those in the know, there are a number of “secret” deductions and claims hiding in plain sight. With a little support from the experts, there are simple strategies that may boost your tax return:
Snap those receipts like a pro: Think of receipts as tickets to getting more money back! Expenses associated with property maintenance and improvements, regardless of their size, hold value. It’s important to keep those receipts for at least 7 years and if you are going to claim an expense, you MUST have a receipt to get the refund. My top tip? Don't spend hours on a complicated filing system. Just open a new photo album on your mobile phone, snap a picture and save them all there for tax time!
Harness the power of depreciation: A property tax depreciation report is like a hidden treasure chest for your investments. Whether your investment is older or you’ve given it a fresh touch with renovations, you’re in for some deductions. Any investment property built after 16 September 1987, regardless of its condition, qualifies for depreciation claims up to 40 years from the date of the improvement. This 40-year window makes it worthwhile exploring sooner rather than later! Learn more about Tax Depreciation Reports with our free download.
Call in the property tax experts: My tip to investors - if you find yourself asking your accountant more questions than they ask you, your portfolio may need a more specialised accountant, who fully understands those property related deductions which often slip through the cracks.
Good to know...
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Commonly claimed deductions on investment properties include the interest portion (excluding the principal) of mortgage repayments, repair and maintenance costs, property management fees, leasing related expenses, landlord and building insurance, water and council rates, strata fees, and any other expenses directly associated to running and maintaining the investment.
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Some costs are tax deductible in the year they are incurred, while others can be used to reduce your profit or capital gain, such as stamp duty and conveyancing fees.
Let's get started!
Maximising your property tax return is all about having a solid and consistent strategy in place, getting some expert tips, and finding those hidden gems in deductions. So, how much could you save?
At Opteon, our specialist property tax team can help you with Capital Gains Tax Valuations, Stamp Duty Valuations and Tax Depreciation Reports to assist in reducing your taxable gains and income tax liability.
As a national valuation services provider, Opteon covers 98% of postcodes in Australia. No matter where your properties are located, we have local expertise in every region.
Belinda Botzolis
Head of Consumer Valuations
belinda.botzolis@opteonsolutions.com
DISCLAIMER
This material is produced by Opteon Property Group Pty Ltd. It is intended to provide general information in summary form on valuation and property advisory related topics, current at the time of first publication. The contents do not constitute advice and should not be relied upon as such. Formal advice should be sought in particular matters. Opteon’s quantity surveyors and valuers are qualified and experienced in providing depreciation schedules of your property. Opteon does not provide accounting, specialist taxation or financial advice. Liability limited by a scheme approved under Professional Standards Legislation.
