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Smart tax moves: Deductions, structures, and strategy

As tax season approaches, property investors are being urged to plan early and strategically to optimise their returns and stay compliant.

Munzurul Khan November 2019 Edit

In this episode of The Smart Property Investment Show, journalist Emilie Lauer sits down with Munzurul Khan from KHI Partners to discuss how investors should approach tax planning, deductions, and structures.

Munzurul stresses the importance of pre-30 June actions, like bringing forward deductible expenses, and outlines key deductions investors often overlook, including purchase-related costs and lender’s mortgage insurance.

Munzurul warns against common errors, such as confusing capital improvements with repairs or failing to claim interest correctly. Maintaining clear monthly records and substantiating all claims are vital, especially in the event of an Australian Taxation Office audit.

For investors using negative gearing, Munzurul explains that its value lies in offsetting rental losses, though it’s limited by taxable income.

 
 

He also discusses the tax implications of changing property use and how ownership structure can influence tax outcomes.

Finally, Munzurul notes that while trusts and companies can offer tax benefits, they carry added complexity, so investors should stay informed and seek professional advice for long-term success.

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