As we navigate the new fiscal year, property investors need to stay savvy with their tax strategies to maximise returns and minimise liabilities. With the right planning and advice, you can leverage tax to your advantage.

Here are five essential tax tips for property investors.

  1. Engage a Good Accountant: A skilled accountant who specialises in property investment can help you navigate tax deductions, capital gains tax, and depreciation schedules. They will ensure you’re not missing out on any potential savings and that you’re compliant with all tax obligations.
  2. Depreciation Benefits: Depreciation allows you to deduct the cost of wear and tear of the building and its fixtures over time from your taxable income. Ensure you have a depreciation schedule prepared by a qualified quantity surveyor to claim these deductions accurately.
  3. Maximise Deductible Expenses: Property investors can deduct numerous expenses related to owning and managing rental properties. These include mortgage interest, property management fees, maintenance costs, insurance, and council rates. Keep detailed records of all your property-related expenses to claim these deductions.
  4. Consider Capital Gains Tax (CGT) Strategies: If you’re planning to sell your investment property, understanding CGT is crucial. You can learn more about it here – https://www.ato.gov.au/Individuals/Capital-gains-tax/What-is-capital-gains-tax
  5. Employ a Quality Property Manager: A competent property manager can ensure your property is well-maintained and tenanted and can keep records of all income and expenses related to the property. This includes rent collected, repairs, maintenance costs, management fees, and any other deductible expenses. Not to mention, the cost of employing a property manager is tax-deductable!

So, start the new year off on the right foot, and remember, your financial situation is unique, so these tailor these strategies to your specific needs. And if you need a great property manager, the team at McGees are ready to help!