Property Tax Accounting

Investment Property Tax Return

When lodging your investment property tax return, you must ensure that you declare all income you have received and the expenses you have incurred with your investment property.

It’s important that you collate all your investment property records. If you use a property manager, you will receive an annual tax statement detailing all income and expenses.

Investment property income may include:

• Rent received from tenants
• Rental bond returns
• Insurance payouts

Investment Property Tax Deductions

Immediate investment property tax deductions can generally claim for expenses concerning the maintenance and management of your property, including interest on loans.

Below are some examples of tax deductions you can claim on your investment property:

• Advertising for tenants
• Body corporate/strata fees
• Council rates
• Utilities
• Insurance
• Interest on loans
• Legal expenses
• Pest control
• Repairs and maintenance (generally claimed in full in the year you incur them)
• Accounting fees
• Gardening and lawn mowing
• Bank charges
• Property agent fees and commission
• Cleaning
• Quantity surveyor’s fees
• Postage
• Telephone charges
• Capital works and improvements (through depreciation)
• Land tax

Often, you may negatively gear your property if your expenses exceed your income on the property.

Box Advisory Services Property Tax Accounting

Box Advisory Services are property tax specialists focused on property tax accounting. With the help of Box Advisory Services, we can:

• Afford better asset protection by assisting you in effectively structuring your investment portfolio
• Improve cash flow on your investment property by claiming various tax deductions on expenses
• Legally reduce tax liability with your investment properties
• Claim on all tax deductions that you are legally permitted to
• Gain access to our finance network to receive the lowest interest rates available
• Help develop a future investment property strategy

At Box Advisory Services, we aim to maximise your investment property claims as well as protecting your wealth. By appropriately structuring your business, it can have significant benefits in asset protection and reducing your tax liability.

With over 15 years’ experience in property tax accounting, we have developed many bespoke strategies for our clients to benefit them and future-proof their investments in the years to come.

When to Talk to a Property Tax Accountant

Our property tax accountants work with people buying their first investment property, landlords with several, and owners getting ready to sell. Talking to us early helps most, because ownership, the loan and the timing of a sale all change the tax result, and they are hard to change once contracts are signed.

We also help when a home becomes a rental, or a rental becomes your home, because that changes how the main residence exemption and capital gains tax apply.

Your Rental Property Tax Return Each Year

Rental income and expenses go in your individual tax return. Each year we bring the rental figures into the return and split costs between those you can claim in the same year and those, such as capital works, that are claimed over several years.

If the property is jointly owned, income and expenses are generally split by each owner’s share, so both owners’ returns need to use the same figures.

If you track the property in Xero, MYOB or QuickBooks, or it is owned by a business that uses one of them, we can work from that file. Otherwise, your property manager’s statements are usually enough.

Because rental income is part of your own return, the same 31 October date applies, as do the later due dates available when a registered tax agent lodges for you.

Book a free 20-minute meeting with one of our accountants for a later date, or call 1300 411 022. If you are about to sign a contract and need advice now, a paid priority appointment is available on our booking page. You can meet us at our North Parramatta office or work with us by phone and email.