Trusted Partners 03 – Tax tips for landlords
Hi guys, it’s David here from Bugwash Property. We have with us today, Meena from Solution Accountants. Got a question for you, Meena. Mate, have you got a few hints and tips for any landlords out there today?
I do, so three main tips to keep in mind. So things that are commonly missed by rental property clients. So the first one would be, borrowing expenses. So when they take out a mortgage to purchase the rental property, they commonly forget about the fees and charges they’ve paid to the bank.
To claim those as tax deductions. So in general terms, they’d be entitled to claim those tax deductions over five years and it’s a common element that’s sometimes missed. My second tip for clients is acquisition costs. So when they’re looking to purchase the investment property, they would generally pay for legals and other related costs such as stamp duty. Just remembering that these aren’t claimable straight away, but they are claimable at the time of sale in their capital gains calculations. The third tip from me is when they are calculating their capital gains at the time of sale is to keep in mind concessions that might be available. So if they’ve owned the property for more than 12 months, they may be entitled to a 50% capital gains reduction.
Yes, okay. Thank you very much.