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Four Important Tax Deduction Tips for Property Investors in Australia

July 22, 2015

Chances are strong that you are reading this blog because you are a property investor, and apparently want to correctly claim your tax deductions and avoid a follow up from the Australian Taxation Office (ATO). You can make most of tax time if you claim deductions correctly. There are certain simple claims at the tax time that many property investors tend to miss extra tax deductions. It’s important to know about these extra claims available, even if you as a property investor do not directly manage your tax return, it will help you bringing this to notice to your respective accountant. Australian Taxation Office (ATO) allows all property investors to claim on certain tax deductions.

Here are 4 important tax deduction tips that every property investor needs to know:

#1 Purchasing Fees That Secures Your Mortgage

As a property investor, you may also be able to claim a tax deduction for the expenses of any fees that it might take to secure your mortgage i.e. the property you conveyed to the creditor (bank, building society etc.) as a security on the loan you took. The fees to secure your mortgage may include the broker fees, establishment fees charged to your account when you take out a personal loan, tittle search fees and stamp duty.

#2 Interest Expenses on the Loan for the Perspective Property

Another thing out of all that you may claim straight right away is the interest on the loan you took to purchase a rental property or even a land to build a potential rental property, provided that the loan amount is not going to be used for any other expense except for that property. Suppose that a part of the loan amount you take is going to be used for another additional private purchase such as a car, and then the claim will not be considered.

#3 Travel Expenses

If at all, your travel expenses include reasons such as the site visit and inspection, collection of rent or repairing of the property then you can claim for tax deduction straight away. Provided, the traveling venture does not include any other motive except for the things mentioned above. At times people have plans for larger trips and just a small stop by their property. This kind of tax deduction claim would not get entertained.

#4 Maintenance and Repairs of the Property

No doubt, your property might be subjected to wear and tear or damage over the time that will pass. This can be the result out of renting the property to somebody. Then there might be a need of maintenance and repair. This may include either renovating or prohibit the damage. Well, remember that expenses shortly after the purchase of the land or renting property cannot be considered in the tax deduction claim.

Apart from these straightaway tax deduction claims you can ask for, remember to keep a record of your receipts, as ATO’s motto is kind of no receipt – no deduction. Moreover, don’t forget to get a great accountant, since a great accountant is like a surveyor.

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