While your focus might be on getting the last financial year finalised, now is the perfect time to make sure that you understand the full range of opportunities that you can put in place to benefit from your property over 18-19.
Negative gearing is the term commonly used for reducing your taxable income by the amount that you have lost on your investment property. If you’re total income doesn’t cover the loss from your property, you can also factor it into your following year’s tax return.
To get the full benefit from negative gearing, it’s crucial to keep your record keeping associated with your investment property in order. Don’t overlook or forget to include any claimable expenses from the three M’s associated with your investment – mortgage, management and maintenance!
Depreciation is another consideration to reduce your tax burden. Consider all of the assets installed in your property – from hot water systems to air conditioners – and make sure this isn’t missed at the end of the financial year!
