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Top tax tips for property investors in 2023

Oktay Sengoz

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12/07/2023

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1 min read

As a property investor, tax season can be a challenging time. However, by following a few simple tips, you can navigate the process with ease.

Below are 5 simple strategies to help you get the best out of your tax return.

Organise your financial records

Start by organising all your financial records related to your property investments. Keep track of rental income, expenses, and any other relevant documents. This organisation will save you time and ensure you claim all eligible deductions accurately.

Understand rental property expenses

Familiarise yourself with the rental property expenses you can deduct. These may include interest on your mortgage, property taxes, insurance, maintenance costs, and property management fees. Knowing what you can claim will maximise your deductions and may minimise your tax liability.

Separate personal and rental expenses

Maintain a clear separation between personal and rental expenses. Use separate bank accounts and credit cards for your rental properties to make it easier to track income and expenses. This separation will simplify your record-keeping and prevent any confusion when completing your tax return.

Depreciation deduction

Take advantage of the depreciation deduction available for rental properties. Depreciation allows you to deduct a portion of the property's value over time. Typically you can claim depreciation on the building and the fixtures and fittings of your property. You can obtain a depreciation schedule specific to your property which will give you the exact amount you can claim each year to determine the best method for calculating depreciation and ensure you claim the maximum allowable amount.

Consult a tax professional

Consider working with a tax professional who specialises in property investments. They can provide personalised advice, help you optimise your tax strategy, and ensure your tax returns are accurate and compliant. Their expertise can be invaluable in maximising your deductions and minimising any potential audit risks.

Completing your tax returns as a property investor doesn't have to be daunting. By following these concise and impactful tips, you can streamline the process, minimise your tax liability, and stay on top of your obligations.

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