We see our role as property managers as not just to make our clients’ lives easier by collecting and dispersing the rent. We aim to help the landlords we work with accumulate wealth faster.

June 30 is an excellent time to plan for your investment property here on the Sunshine Coast. Below are my top tips to act now to ensure you are structured for the highest tax deductions possible for your Sunshine Coast investment property

CLAIMING ALL EXPENSES

If you are using a property manager, they will send you an end-of-year financial statement after June 30th that shows all your income and expenses for the property. Some investors like to pay council rates, water rates, and insurance directly, so you need to ensure you manually include these along with any other expenses you did not run through your property manager and provide your accountant gets everything.

If you use a property manager, you should get them to pay your council rates, water rates, and insurance, so they appear on your end-of-financial-year statement to ensure nothing is “missed.”

Interest on your loan and bank fees are also an essential part of your expenses you can deduct.

TAX DEPRECIATION REPORT

It still shocks me how many investors don’t have these. Summit Quantity Surveyors guarantee that your first-year deductions will be at least double their fee. So investing in a tax depreciation report is a no-brainer. 

Usually, for under $600, these can be done once and used for up to 40 years. The idea is that everything on the land is depreciating, and it can all be written off. The newer the house, the better, but even ancient houses can get reasonable deductions. The tax an investor can save on the first 12 months of a brand-new build is staggering. Summit estimates around $10,000 are possible. Who would not want an additional $10,000 tax deduction? Anyone?

Getting these reports is easy. Just ask your property manager or connect directly with Summit. You can call Anthony, the owner, on 0452 633 630.

DEPRECIATE NEW EQUIPMENT

Suppose you have installed a new oven, dishwasher, hot water system, air-con or even solar. All this can be written off over a few years, so you must ensure you are tracking this and your accountant knows all about it.

The ATO has some great information in this article here.

OUTSTANDING MAINTENANCE

Does your property have any overdue maintenance? I’m a big believer that when someone invests in a property, they are also investing in the importance of keeping on top of care when it happens. If your property has any maintenance that still needs to be done, doing it now will help with tax, help you keep the rent at market rent, keep the tenant happy and protect your property’s value. 

CORRECTLY DIVIDE INCOME AND EXPENSES OF CO-OWNED PROPERTIES

If you share ownership of your rental property with another, you’ll need to divide the income and expenses according to your legal interest in the property.

INTEREST RATES

A few years back now, I saved about $18,000 in interest by reviewing my rates. Then almost a year ago, I saved about $8,000. I just got a mortgage broker to do all this for me and report back. I’ve found Paul Olsen from Money It Is on 0414 752 235 or paul@moneyitis.com.au to be the most switched on and has found things with my finance that I have yet to realise. Having Paul look at your current loans and see what else is possible is free. Yes free. So why wouldn’t you have a chat and see what’s possible? You, too, might have $18,000 of savings in interest waiting for you, and you never knew. 

If you have questions or need help, feel free to reach court to us here at Asset Agents.

INSURANCE

With the recent rain events, we have had more insurance claims than ever. With that, I realise that not all insurance companies are the same. It’s about more than just getting a reasonable price. Price is only relevant if the insurance company honour a claim. Recently I had a water claim refused as the insurer directed me to page 85, clause 212; they do not insure water if it has gone through a wall. 

But also, if you have had to make a claim recently, you’ll find 2 hours waits and months for action to be taken. 

Everyone needs to connect with Bruce Exton from Yes Insurance. He is a Sunshine Coast local. When you get insurance through Bruce, he is your contact; call him; it makes claims a breeze. While your insurance might be due later, it is a great time to plan for it. Bruce is on bruce@yesinsurancesolutions.com.au or 0413947698

If you have questions or need help, feel free to contact us here at Asset Agents.