Housekeeping tax wise before eofy

[ije]

Hi,
With June 30 approaching, just wondering if I could / should use some cash from my ppor offset to prepay some strata fees and interest payments?

I'll be modelling this up shortly to see the effect for me, but curious, what others do around this time of year in this regard?

Wife and I are salary earners, paying top bracket, 3 ips so people in similar circumstances may have some tips to share.

Also, not quite a tax question so might need a seperate thread, do you do annual maintaince on your ip property management contracts, insurances, strata managers reports etc. - do you make a point of checking these annually, on inception only, never, all the time etc etc

 

[Paul@PFI]

You could prepay interest for a year. However it must be agreed with the bank and time is ticking.

If you do it will double the interest deduction this year. HOWEVER you must repeat this same process each and every year or you will have a year with ZERO interest tax deduction. I have seen people forget, apply too late or even decide to sell and this forces a problem.

Think of it this way - You would get 49% of the interest prepayment back in a large cash refund.

PS : The limit to prepay is 12months. No more.

 

[ije]

Seems like a good idea to prepay if I knew next financial year my salary would drop significantly or change in employment status ( from salary to business etc )

Good to know that you need time to tee it up with the banks - I would have assumed I could just call late June and have it done!!