Spring is the ideal time of year for investors to review their property portfolios, according…
As the end of the financial year draws closer, it’s time to start thinking about tax returns.
Tax time is particularly important for landlords who often come under close scrutiny from the Australian Tax Office (ATO).
Leading landlord insurance provider, Terri Scheer Insurance, recommends landlords speak with their accountants to confirm what they can and can’t claim as a tax deductible expense and maximise their tax returns.
“There are numerous tax-related considerations that can streamline the process for owners of residential rental properties,” Terri Scheer Insurance Executive Manager, Ms Carolyn Parrella said.
“Some tax deductions allowed for investment properties are often overlooked.
“Property investors can usually claim their landlord insurance premium as a tax deduction.
“They should also think about any maintenance work on their rental property that can be included in this year’s tax return.
“Body corporate costs, advertising for a tenant and the cost of travel to property inspections are other potential deductable expenses to consider.
“As a starting point, visit the Australian Tax Office website (www.ato.gov.au), which contains user-friendly information to assist property investors with their tax returns.
“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.
“Some landlord insurance policies may even provide limited cover for ATO tax audits relating to investment properties.
“Many property managers will provide a detailed end-of-financial year statement. If not, landlords should ask their property manager for one that they can give to their accountant outlining all of their costs, including property management fees and insurance.
“Seeking advice from a tax specialist can help make this time of year much easier for landlords.”