Generous it might be but the Australian Tax Office goes to great lengths to police the tax system for property owners and every year thousands of Australians find themselves audited by the taxman for questionable claims or dodgy deductions.
Tax law is complex so whether you have already dipped your toe into the property game or are considering making a future investment, it pays to understand the basics.
The rent you earn on your investment property is assessable income and must be declared on your tax return each year.
The expenses you incur in running your investment property are (mostly) tax deductible, either immediately or over time.
Make Yourself Accountable
Ensure you have all the neccessary documentation relating to the expenses of your investment property. Keep an eye on current investment rates. Have a look at deprecation schedules. Could you be doing more to help grow that investment portfolio?
- What is our current interest Rate?
- What is our depreciate schedule?
- Have we met all the ATO related obligations?
- Planning to grow that investment portfolio?
- Is our taxes in order?
- Considered leveraging your investment property to grow?
Growing your portfolio requires a detailed plan. Most Australians ignore their financial obligations. Try to understand the financial obligation.