Property investors should know how important it is to settle their tax returns correctly. The following are some tax tips prepared by Southbourne Tax Group to help you avoid having errors on your taxes.
When lodging tax returns, landlords usually come under inspection from the government so it is really crucial for them to have complete and accurate returns. In order to determine what can and can’t be claimed as a tax-deductible expense, Southbourne Tax Group suggests consulting your accountants as a landlord. With this, all claims are ensured legitimate and the tax return amount is maximized.
If you seek to make taxes easier as a landlord, it would be better to get the professional advice of a tax specialist. It is sometimes unavoidable to have tax-time stress but just continue reading and Southbourne Tax Group has a few more tips for you.
Negative gearing: In order to reduce the tax payable, the net loss which generates from negative gearing should be offset against other income. If a property is available for rent, landlords can claim the interest. However, you can’t claim the interest for the full 12 months of a property that is lived in for half a year and leased as a holiday rental for the other half.
Insurance: Making sure that you have the right coverage in checking your insurance policy is also important. Landlords won’t be covered for particular risks involved in property investing with a standard home and contents insurance policy.
Expenses: Southbourne Tax Group suggests not forgetting to claim the costs you are duly entitled to. As mentioned before, before submitting your claim, confirm first with your accountant on what can and cannot be claimed.
Offsetting costs: Are you one of the self-managing landlords? Working from home and its costs could be claimed as well, but not all since only a fair and reasonable part of it can be deductible.
Property manager: The cost of property managers can be a deductible expense said experts and they can be helpful to landlords as well. Landlords can save time by hiring a property manager because they can create a potential tax benefit while assisting with the organization at the same time.
Moreover, the administrative responsibilities included in an investment property can be taken good care of a trusted property manager, so with the help of such professional, the tax-time burden can surely be lessened.
You can contact Southbourne Tax Group today to know more steps on how to avoid doing taxes wrong with their proper tax guidance and service.