Landlords always want to maximise their rental property tax deductions and want to claim work done on their properties as repairs because that means a 100% immediate tax deduction.
A common mistake that landlords make is incorrectly identifying the type of expense insured when claiming expenses for work done on their rental properties.
It’s important to understand the difference between repairs & maintenance to the rental property and capital improvements.
This episode is about the costly mistake that landlords often make when they claim the work done on their properties.
What you’ll learn:
- (0:50) General Advice Disclaimer and Introduction
- (1:47) Maximizing Rental Property Tax Deductions: Understanding Repairs vs. Capital Improvements
- (2:39) Differentiating Repairs and Capital Improvements
- (3:25) Tax Office Guidance on Deductibility of Repairs
- (3:46) Common Mistakes: Initial Repairs and Deductions
- (4:29) Impact of Repairs and Improvements on Capital Gain/Loss
- (5:05) Depreciation and Capital Improvement Costs
- (5:36) Claiming Capital Works Deductions
- (6:32) Importance of Qualified Professionals for Depreciation Reports
- Loads more…
Links and Resources:
ATO (Australian Taxation Office) – Rental Property Expenses
#TaxAdvice #PropertyInvestment #RentalProperty #TaxDeductions #PropertyMaintenance