Important – Strategies to Maximise Your Tax Return
You have less than one month left to slash your tax bill.
I have prepared a tax deduction checklist for property investors to have handy during the financial year.
Depreciation is the big one for property investors because you don't actually have to spend the cash to get the deduction.
Here are few things to keep in mind when it comes to depreciation and deduction;
- Pre July 1985, no building allowance, but investors can still claim for plant & equipment, e.g. air conditioning, hot water service, curtains/blinds, carpets etc.
- July 1985-1987, 4% building allowance plus fixtures and fittings
- Post 1987, 2.5% building allowance plus fixtures and fittings
- Deduction on aged flat, a typical inner suburban flat built pre 1985, generally range between $2000-$6000 pa for a well renovated flat
- Deduction on a new villa unit could be as high as $10,000 pa depending on the dwellings fit out
- Deduction on a new house could be as high as $12,000 pa depending on the fit out
- Deduction on a high rise apartment could be $17,000 pa and higher depending on the fit out
Warning: New legislation is proposed to remove plant /equipment from depreciation unless the investor installed it, applies from 1st July
Note: If you have not been claiming or maximising your claim you can adjust two previous tax returns