End of fin year IP tax deductions?

Discussion in 'Accounting & Tax' started by Daves2074, 22nd May, 2018.

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  1. Daves2074

    Daves2074 Active Member

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    Need to reduce tax!
    What are some suggested end of fin year tax deductions on investment properties?
    Thanks
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Why don't you go with the ones on the ATO website - or better still, let your accountant do it.
     
  3. Daves2074

    Daves2074 Active Member

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    Sorry I mean some ideas or suggested repairs/improvements etc etc to do prior to end of year
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Improvements are only going to be depreciated at various rates like 2.5% for example, so not much tax savings there.
    Repairs can be an immediate write off. But why aren't you doing repairs anyway? I suppose if you are flushed with cash, you could do inspections on all your IPs and take care of the necessary repairs before June 30.
     
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Simon - Thats a good point and highlights a key issue. Allow me to elaborate.

    With IPs one of the few "large" things you can do is prepay 12mth loan interest. Otherwise its a strategy of making many smaller changes.

    1. Prepay interest by arrangement with lender
    2. Consider bring forward expected repairs that wont result in depreciation eg repaint interior, replace hotplates or a few blinds etc. Watch for $300+ capital expenses. If unsure what is deductible v's non-deductible then its a sign of needing a tax adviser.
    3. Prepay eligible expenses. Eg are you paying insurance by the month ? Pay the balance on request (Yes you must ask). You cant just prepay. Another tip - Pay the council rates, water etc due at 28th June this side of the financial year not 02 July.
    4. Prepay PC membership
    5. New IP ? Get the QS report organised and paid for NOW
    and so on..... It will all add up.