Who Else Wants Their Investment Property Tax Agent ToMake Them More Cash ?
Making money from your Property Investment takes more than making the right property choice . You need guidance from your tax accountant so that you can increase your cash flow, increase your tax deductions , legally reduce the quantity of tax you pay and effectively use your property’s capital growth to build your Investment Property portfolio.
The following key points are important items that your Property Tax Agent should bring to your attention if you want to make more money from your Investment Property.
Key tips which every Real Estate Investor should consider when buying their Property .
If your name is on the land title deeds then you can declare your income that you earn from your property and the expenses that you incur.
in the main the costs in relation to the purchase of your property are capital costs and will be included in your capital gains tax cost base (cost of ownership) when you sell your property . However, there are a number of costs that will be deductible in your property tax return so make sure that you keep all your receipts .
The date you enter into the contract is the date of purchase for capital gains tax purposes, not the settlement date.
Key ideas which every Real Estate Investor should remember when completing their tax return .
You need to include all your investment property income in your tax return
Don’t forget to consider your:
• Annual summary from your property agent (if engaging the services of an agent)
• Details of your assets that you bought or sold of during the year
• Expenses (which are not elaborated on your real estate agent annual statement ) such as water charges, council rates, land tax and insurance premiums
• Mortgage summary relating to your loan on your property that shows the bank interest that you paid during the financial year
• Mortgage Agreement so that the borrowing costs can be determined and deducted over five years
• Quantity Surveyors Report for your investment property . If you haven’t got a Depreciation Report then you should buy a report immediately . You can instruct a quantity surveyor to reviewing and inspect a pre-existing investment property to create a report that estimates the allowable depreciation and capital works that can be claimed for tax purposes. You can then claim money back from the Tax Office that would otherwise be unnecessarily lossed in tax. The benefits of depreciation are widely recognised in the property circles as the most important factor in achieving a cash flow +’ve situation for your property .
• Details regarding the costs associated with your investment property inspections and/or the repairs and maintence of your property investment .
Key ideas which every Property Investor should consider when selling their Investment Real Estate .
You can dispose of your property by selling it, giving your investment property away, transfering it as the result of a breakdown in your marriage or through compulsory acquisition.
But remember when you sell your investment property , you may have to pay capital gains tax. Capital gain is the difference between your cost base (costs of ownership) and your capital proceeds (what you receive when you sell it). If you have owned your property for more than 12 months , you may be able to reduce your capital gain by the fifty percent discount .
Tax and accounting in relation to your rental property can be difficult . Numerous people don’t claim all the tax deductions they are entitled to because they are not getting the proper professional Property Tax and Accounting advice.
We suggest that you stop wasting your money . Contact Sydney Tax Accountants and they will help you pay less tax, grow your wealth, make more money and secure your financial future .
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This post was written by guestauthor on May 31, 2010
