My hubby and I have bought our first IP in January and I am just preparing myself for tax time. I have been reading info from the tax office about what can be claimed as a deduction, however I am confused about all the costs involved in buying our IP. I understand that stamp duty is added to the cost of IP for CGT purposes, but what about lending costs, solicitor's fees, mortgage insurance, rates paid on settlement, building, pest, electrical inspections etc? If any of these things can be claimed straight away over how many years? Thanks
Newby tax question
- Thread starter bettsy
- Start date
bettsy
Start of by looking at forumite DaleGG's Your Investment Property & Income Tax. This should cover at least some of the things you mention (I'm not quite sure, it's 24 pages and it's late
) and a few things you did not. But it's well worth a read- and is a chapter of a manual which used to cost $99 a few years ago.
(While you're there, also have a look at some other free stuff Dale has available. There's some excellent resources there.)
You haven't mentioned depreciation. That is a potential big tax saver- especially if the property is new or has new fittings.
I don't know the specific answers to your questions. I'll admit that I'm lazy in that regard. But I am spending too much time on my business to know about the specifics of what deductions to claim and how. I leave that to an accountant I can trust- one who knows investment property. I have enough knowledge to know broadly what is going on- and enough knowledge to know that I don't have enough knowledge to do things myself. That's why I pay a professional who knows what he's doing to do a better job for me than I could possibly do for myself.
(I won't say the way has been smooth either- just so that you know I'm not blindly recommending a mate. We've had disagreements. I am so busy at my business that I have been very late in getting papers through, and I have been told off for that. Frequently. I am not very good at record keeping, and that costs me $$$. But Dale & Co know their stuff, and will get you a very good result).
Start of by looking at forumite DaleGG's Your Investment Property & Income Tax. This should cover at least some of the things you mention (I'm not quite sure, it's 24 pages and it's late
) and a few things you did not. But it's well worth a read- and is a chapter of a manual which used to cost $99 a few years ago. (While you're there, also have a look at some other free stuff Dale has available. There's some excellent resources there.)
You haven't mentioned depreciation. That is a potential big tax saver- especially if the property is new or has new fittings.
I don't know the specific answers to your questions. I'll admit that I'm lazy in that regard. But I am spending too much time on my business to know about the specifics of what deductions to claim and how. I leave that to an accountant I can trust- one who knows investment property. I have enough knowledge to know broadly what is going on- and enough knowledge to know that I don't have enough knowledge to do things myself. That's why I pay a professional who knows what he's doing to do a better job for me than I could possibly do for myself.
(I won't say the way has been smooth either- just so that you know I'm not blindly recommending a mate. We've had disagreements. I am so busy at my business that I have been very late in getting papers through, and I have been told off for that. Frequently. I am not very good at record keeping, and that costs me $$$. But Dale & Co know their stuff, and will get you a very good result).
