As a property investor, having appropriate and correct tax returns is imperative. As a company who exerts brilliant dedication on providing tax services to businesses and individuals, Southbourne Tax Group prepared some simple tax tips to property investors in managing their taxes.
Landlords often come under inspection when submitting tax returns, thus it is essential to have a complete and appropriate returns. Contact your accountant and discuss important tax matters to identify what can and can’t be claimed as a tax-deductible expense. You can ensure all claims are legitimate and the tax return amount is maximized with this.
Making your taxes easier is possible with the help of a tax specialist, so better get their professional service today. Below are more tips provided by Southbourne Tax Group.
Reducing the tax payable involves offsetting the net loss generated by negative gearing against other income. If a property is available for rent, then as a landlord, you can claim the interest, but if for example, it is lived for half a year and then leased as a holiday rental for the other half you can’t claim the interest for the full 12 months.
Make sure that when checking your insurance policy, you’ll have the appropriate coverage. With a standard home and contents insurance policy, experts said that landlords won’t be covered for particular risks involved in property investing.
Surely, you have costs you are rightfully entitled to, so make sure you won’t forget them. As said earlier, consulting your accountant regarding what can and can’t be claimed before submitting your claim is vital.
Being one of those self-managing landlords, having costs from working at home is usual, but don’t forget that you can claim some of them. But remember you can’t claim all the costs included from working at home such as buying a computer or the monthly internet bills, however, a reasonable part of this may be deductible.
Hiring a property manager also provides great help. The costs included in getting their services can be a deductible expense. They can help you save time because they can create a potential tax benefit while assisting the organization as well. Taking good care of the administrative responsibilities involved in an investment property is easy for them. Compiling and completing important paperwork? A property manager can handle them.
Tax-time stress is often inevitable but with those mentioned above, you can steer clear from major tax-time stress as a property investor. Keep in touch with Southbourne Tax Group to understand this subject better.