If you have income from investment properties, now is the time to start gathering your records and reviewing your expenses for the 2022 financial year.
All income earned from each property must be declared. If you have multiple properties, keep the records for each property separate to make the tax return more efficient.
You will need statements or recipient created tax invoices from agents or management platforms and documents for all other payments received.
Deductible expenses for property are different for residential and commercial properties. Not all expenses related to owning a property are allowed as deductions, so it’s important to check what you can claim.
There are some expenses which need to be claimed over a longer period such as several years or decades. These can include borrowing expenses, capital expenditure, depreciation, initial repairs and capital works.
Some expenses cannot be claimed for. These include stamp duty, loans and repayments, some legal expenses and some insurance premiums.
Tax matters for property investors can be complex. The ATO keeps a close eye on tax returns that involve property investment, as it’s easy to make mistakes. There are other matters to consider such as the period of rental availability, private use of the property, capital gains tax, legal contracts and positive or negative gearing. This year for many owners there will be insurance claims because of floods.
We’d love to help ensure you are claiming the right deductions to make the most out of your investment property this year and beyond. Book a time now for your 2022 tax return.
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