With the end of the financial year fast approaching, the following brief thoughts might be useful for you to do something about reducing the amount of tax that you pay on your income.
As always, don't just adopt these ideas without a certain amount of thought and consultation with one of the directors of Jamiesons Accountants.
- Undertake a maintenance programme on your properties to improve their appearance and value. By doing so, you may be able to ask for a higher rent; or, have the property revalued so that you can use this increased equity towards buying another property.
- Prepay next year's interest bill.
- Pay for the insurance, body corporate fees, council rates and other costs before the end of June to bring forward tax deductions into this financial year.
- If you have made Capital Gains during the year and you have shares or other assets that have lost money, you might like to consider selling those shares before the end of June to crystallise the loss ?. even if you buy them back again one day in the future. Just don't leave it to the last minute as this always attracts unwanted attention from the Tax Office and looks like it was done just to save tax ?. Even if it was!
- Buy your stockbroker; financial planner; accountant, property manager, or mentor a small gift to thank them for their assistance with your wealth creation and income producing efforts.
- Buy your tenants a small gift to thank them for paying their rent on time and looking after your wealth creation assets for you.
- Where appropriate, consider another trip to inspect your properties, meet with your property manager or other professionals.
- Subscribe to investment related magazines for the coming year.
- Ensure that you have a Quantity Surveyor's report identifying legitimate depreciation claims for every investment property.