It’s that time of year again. Time to get your money back from the Government unless you’ve had a Tax variation form in place and you’ve been receiving it throughout the year.
I’m receiving a lot of questions about what can be claimed and what can’t and I must say there are a lot of Accountants out there giving some incorrect advise. In fact in most cases it’s not even the Accountants its the fact that clients are trying to save money and doing things themselves. If you do have an investment property I’d highly recommend that you utilise the services of a qualified Accountant for your tax. If you need any recommendations please let me know.
Here are some of the common mistakes that are being made:
– Failing to claim interest on the land component of a loan whilst building your investment property. The ATO website clearly states that you can claim the interest on a vacant block of land as long as you intend to build an investment property on it within a reasonable timeframe.
– Clients being advised that they are unable to claim Mortgage Insurance costs. Just remember that all loan costs are claimable, including mortgage insurance, and they are to be claimed over a 5yr period.
– Just a reminder that the only aspects of an investment property purchase that can’t be claimed as an expense are the stamp duty and legal fees. These are able to be claimed as a capital expense once you sell.
– Here are some of the other more common things you can claim; interest on loans, rates, insurances, pest control and property management fees.
I wish you all well in your endeavours at tax time and I hope you get a good return. Please call if you have any tax related questions.