Navigating the complex world of property investments and rental income can be daunting, but with an experienced accountant for landlords by your side, you’re in safe hands. Our team understands the unique financial challenges and opportunities you face as a landlord.
From maximizing tax deductions to efficiently managing rental income, we’re here to simplify your financial journey and ensure your investments work harder for you. Let’s turn your property ventures into a thriving success story!
What Can Landlords Claim on Tax
Here are some common landlord tax deductions you might be eligible to:
- Loan Interest: Landlords can claim the interest accrued on loans used for rental properties. It’s important to apportion interest for mixed-use loans, personal and rental.
- Borrowing Expenses: If over $100, like loan establishment fees are deductible over five years. For amounts $100 or less, they are fully deductible in the year incurred .
- Council Rates, Electricity, and Gas: Landlords can claim these expenses, proportionate to the rental period and rented portion of the property .
- Property Insurance: Deductible as it relates to the rental property .
- Cleaning and Maintenance Costs: These are deductible, including costs for hiring a commercial cleaner .
- Agent Fees or Commissions: Fully deductible expenses related to renting out the property, like real estate agents’ commissions and advertising for tenants .
- Repairs and Maintenance: Immediate deduction for repairs related to wear and tear from renting out the property. Capital improvements are not immediately deductible .
- Capital Works Deductions: Includes certain building costs like extensions and structural improvements, claimable at 2.5% of the construction cost for 40 years .
- Body Corporate Fees and Charges: Deductible in full in the year incurred, except for funds applied to major capital improvements or repairs .
- Others
It’s essential to keep all receipts and consult with a tax specialist to ensure compliance and maximize deductions.
Why Landlords Need Specialized Accountants
If you are a landlord, property investor, Airbnb owners, real estate rental owner, or housing lessor, here’s why you need a specialized accountant:
- Complex Tax Laws: Specialized accountants are well-versed in the ever-changing tax laws affecting real estate and rental properties, ensuring compliance and maximizing deductions.
- Rental Income Management: They proficiently manage and report rental income, crucial for maintaining accurate financial records.
- Expense Deductions: Expertise in identifying and maximizing legitimate deductible expenses related to property management.
- Capital Gains Tax: Skilled in handling capital gains tax implications for property sales, vital for optimizing financial outcomes.
- Property Depreciation: Specialized knowledge in calculating depreciation on property and assets, a significant factor in tax reduction.
- Loan Structuring: Offer guidance on loan structuring to ensure tax-efficient borrowing for property investments.
- Tax Planning Strategies: Provide strategic tax planning specific to property investments to improve overall financial performance.
- Regulatory Compliance: Ensure adherence to all regulatory requirements and lodging accurate tax returns.
- Wealth Management: Aid in broader financial planning and wealth management, aligning property investments with long-term financial goals.
- Audit Support: Offer support in case of audits or inquiries from tax authorities, leveraging their expertise in property taxation.
What Landlords Should Look for in an Accountant
Landlords should look for an accountant who excels in financial planning, ensuring their property investments align with long-term financial goals. The best accountant for a landlord is one who offers meticulous bookkeeping services, critical for tracking income and expenses accurately. They should be proficient in tax preparation, adept at navigating the complexities of property-related taxes.
Equally important is expertise in tax planning, enabling landlords to strategically minimize tax liabilities and enhance profitability. An ideal accountant would also provide insightful advice on rental income optimization, expense management, and investment growth strategies, ensuring landlords make informed decisions for their property portfolios.
