Landlords it’s time to talk tax and maximise your return
As the countdown to the end of financial year draws closer, it’s time for landlords to start thinking about tax returns and confirm with their accountants what they can and can’t claim as a tax deductible expense, according to Terri Scheer Insurance.
Terri Scheer Insurance executive manager Carolyn Parrella said tax time is particularly important for landlords who often come under close scrutiny from the Australian Tax Office. “Speak to your accountant as they are best placed to advise on how to assess expenses, for example maintenance work on rental properties, that can be included in tax returns.”
“Seeking advice from a tax specialist can help make this time of year much easier for landlords, as some tax deductions allowed for investment properties are often overlooked," said Parrella.
Parrella advised there are numerous tax-related considerations that can streamline the process for owners of residential rental properties, such as:
1. Visit the Australian Tax Office website. You'll find user-friendly information to assist property investors with their tax returns. Mozo recommends using an income tax calculator to quickly see the amount of tax you’ll pay and what you have left over.
2. Landlord insurance premium. Property investors can usually claim their landlord insurance premium as a tax deduction. Check out Mozo's Home & Contents Insurance guide here for more landlord insurance tips.
3. Any maintenance work. A fresh coat of paint or rental refurbishments on your rental property can be included in this year’s tax return.
4. Body corporate costs. Advertising for a tenant and the cost of travel to property inspections are other potential deductible expenses to consider.
5. Detailed end-of-financial year statement. Ask your property manager for one, so you can give it to your accountant outlining all of your costs, including property management fees and insurance.