The end of financial year is fast approaching – have you made yourself aware of what tax returns are available to you as a property investor?
Blogger: Peter Gianoli, general manager, Investor Assist
The end of financial year (EOFY) seems to bring out the worst in everyone.
Accountants hate it because they are so frantically busy, tied to their desks and unable to see their families for weeks on end because they’re busy sorting through your taxes. Business owners break out in a cold sweat because they can no longer ignore the 12 months of bookwork they have allowed to accumulate, and employees get grumpy because they can never claim as many tax returns as they think they are entitled to and therefore spend the next few months complaining about how much tax they have to pay each year and how small their tax refund is.
In fact, I challenge you to carry out a little social experiment among your friends and family. Next time you are involved in a casual conversation, just throw in the line, ‘Well… it’s almost tax time again’ and see what response you get.
I bet at least eight out of 10 people will either (a) groan or (b) complain. There are probably one or two that will ignore the comment altogether, not even getting a little excited at the prospect of their tax refund.
I am the complete opposite – I find EOFY to be one of the busiest and most rewarding times of the year.
Because it is one of the best times for me to show people how I can help them to achieve financial security through property, regardless of how small their tax refund is. It’s when I can do my job the best, highlighting the fact that investors can get an investment property tax deduction.
Many people don’t realise how easily they could strengthen their financial position and possibly pay less tax each year with an investment property tax deduction. Not only could they be paying fewer taxes, but they could be benefiting from any increase in value to the property over the longer term.
But unfortunately, it’s often not until after EOFY has passed that people realise they need to take action, and by that time it’s too late to make any improvements to their position. It’s another year gone and another opportunity for an investment property tax deduction missed.
The good news is EOFY is still a few weeks away and it’s not too late to take action towards an investment property tax deduction.
I encourage everyone to be proactive before 30 June arrives, and assess your likely tax returns before the end of the financial year. Are you paying more taxes than you need to be? Would an investment property suit your individual circumstances and possibly provide you with long-term financial benefits such as investment property tax deductions?
Just think – if investing in property has the potential to save you thousands of dollars each year through a deduction that you would otherwise be paying in tax, it would be the same as having a win on the Lotto or receiving a bonus at work. Any money saved goes towards improving your financial position, but so many people let the opportunity of improving their taxes pass them by. Don’t be one of them!
You have just over a month to see what tax returns are available to you, so now is the time to make some inquires. All the best, and I hope it proves to be a rewarding exercise.