TAX TIPS FROM OUR RENTAL MANAGER
The rental market is on the rise. Are you looking to purchase another investment property, or do you know someone who has an investment property in the Bendigo area? Connect with us today, and we can discuss the benefits of growing your investment portfolio and how we can increase your income and wealth.
TAX TIME UNDERSTANDING THE BASICS
We are fast approaching that time of the year where property investors need to get prepared and take the time to understand their tax obligations.
Whether you plan on preparing your tax return or working with an accredited accountant, the following can assist you in getting organised, including a couple of helpful tips to better understand rental income and expenses.
Rental income is simply the total amount of rent and other associated payments, such as refunded bond money at the end of the tenancy, reimbursements, insurance payouts, and booking or cleaning fees received.
Rental expense is the total amount incurred or paid that is directly associated with renting the property.
There are three categories of rental expenses:
- Non-claimable deductions
- Immediate claimable deductions
- Deductible over several income years
Other expenses you can claim when you sell your investment property are Cost-Base or Capital expenses which reduce the amount of Capital Gains Tax (CGT) when you sell.
NON-CLAIMABLE DEDUCTIONS (EXPENSES)
- Acquisition and disposal cost of the property (These costs are claimed when you sell the property under cost-bases expenses such as Stamp Duty and capital improvements you have not previously claimed)
- Expenses not incurred by you, such as water or electricity usage paid by the tenant.
- Expenses related to periods where the property was not available for rent.
- Travel and seminar expenses related to the prior purchase of a property.
IMMEDIATE CLAIMABLE DEDUCTIONS (EXPENSES)
We have created a checklist-style summary of these deductions to assist our property investors in ensuring they have accounted for all expenses.
RENTAL PROPERTY STATEMENTS
- Administration costs
(stationery and postage)
- Advertising for tenant costs
- Agent’s fees and commissions
- Body corporate fees
- Cleaning & caretaking fees
- Council rates
- Electricity and gas
- Gardening and lawn mowing
- Inspection costs (including annual
- Insurance premiums (landlord,
building, contents, public liability
- Pest control
- Repairs and maintenance (non-capital improvements)
- Water charges
PRIVATE RECORD STATEMENTS
- Accounting fees
- Bank charges
- Home office expenses (where deductible)
- Interest on loans
- Land tax
- Legal expenses
- Mortgage discharge expenses
- Quantity surveyor’s fees
- Stamp duty fees
- Stationery and postage
- Tax-related expenses
- Travel and car expenses (where deductible)
- Borrowing expenses, depreciation as per schedule and capital works
DEDUCTIBLE OVER SEVERAL INCOME YEARS
There are three types of expenses deductible over several years as outlined below, which can be a more complex part of the overall tax return that will require professional advice, reports, and the preparation of schedules.
- Borrowing expenses (loan establishment fee, lenders mortgage insurance, broker fees, valuation fee for loan approval)
- Depreciation (of non-cost-base items such as chattels, fixtures and fittings or replacement chattels)
- Capital works (that are non-cost-based capital expenses)
COST-BASE OR CAPITAL EXPENSES
- Stamp Duty
- Legal/conveyancing fees (when purchasing the property)
- Borrowing expenses (unless previously claimed)
- Lenders Mortgage (if not previously claimed)
The above is a brief overview of understanding tax time so that you can be more prepared. We recommend that all investors organise a pre-tax planning meeting with their accountant or financial advisor to ensure you claim the maximum benefits
9 FREDERICK STREET, BENDIGO
BED: 3 + S | BATH: 1 | CAR: 2
Blue chip location in the heart of the hospital precinct and a short walk to View Street Arts Precinct, café’s, restaurants and the CBDExisting house is available with vacant possession, ripe for renovation or lease until you decide what to do, options aplenty! Perched on the high side of the road, 856m2 corner lot with subdivision potential (STCA), fabulous position to invest or resideRenovate existing home and live/rent, subdivide block & build a townhouse at rear or demolish house & start with a blank canvas
PRICE: $595,000 – $625,000
AGENT: Tim Rooke – 0408 108 810
SEE MORE: phproperty.com.au/1P5788
2/28 BAYNE STREET, NORTH BENDIGO
BED: 3 | BATH: 2 | CAR: 2
Low maintenance townhouse living at its finest, live a care free lifestyle a stones throw from Bendigo Hospital & Lake WeeroonaWalk to the Bendigo CBD, shops and cafes, very private and set back from the road with awesome views across the city skylineDbl storey floor plan, spacious open plan living on top floor with balcony alfresco area, master bed with ensuite, s/s heating/coolBedrooms & bathroom located on ground floor, double garage, ideally suited to investors, downsizers or professional couples alike
PRICE: $580,000 – $600,000
AGENT: Tim Rooke – 0408 108 810
SEE MORE: phproperty.com.au/1P5689
RESIDENTIAL TENANCY ACT CHANGES
ONLINE ZOOM AUCTION
Lot 3 Mandurang Road, Manudrang
We were hit with a lockdown curveball last week, we adapted quickly and achieved a great result for our vendors – with our first online zoom auction
16 Registered bidders
42 Total bids
Final bid was $85K over top end of price guide
Here at PH Property we are proud to offer an “above and beyond service”.
If you are a happy client and want to leave a google review it would be greatly appreciated, this helps us out a lot as our reviews are crucial to our business growth. We are very proud to have 181 Google reviews with a 4.9 star rating if you are unsure on how to leave a review the steps to do so are below.
- Click on this link https://g.page/PHProperty/review?kd
- You may have to log-in (with your Google account)
- Click the number of stars (hopefully 5) 😉
- Leave some comments below the stars
PROPERTY MANAGEMENT SOFTWARE
Here at PH Property we use the latest technology.
Did you know the software we use has an Owners Portal?
The portal offers complete transparency, so you know, your Property is managed right.
The video attached gives you insight on how to use the portal or if you have any questions you can ask a member of our friendly team.
INTERNATIONAL DOG DAY
TIM – 11 YEARS
CORINNE- 2 YEARS
RENAE – 2 YEARS
OUR RENTAL TEAM
Catherine Beecroft – 0429 038 011
Casey Johannesen – 0422 383 627
Bec Wharton – 0432 573 930
Darcie Fry – 5454 1999