Trusted Partners 05 – Maternity Leave & your Investment Property
Hi, guys. It’s David here from Bugwash Property. We have with us today one of our trusted partners from Solution Accountants, Meena. How are you, Meena?
Question for you today, mate, what happens when you go on maternity leave, when you own one or more rental properties?
Yeah, sure. So, clients going on maternity leave should keep in mind that negative gearing or negative geared properties have to offset against some from of income. So in periods of maternity leave their income may reduce or reduce dramatically, where some of those negative gearing benefits might not have their total benefits. So, one way is to plan for these maternity leave periods. So, prior to taking the maternity leave you might want to consider pre-paying or paying in advance some of those expenses, just to bring those reductions into the year when your taxable income is slightly higher. And then on the end of that, so when you’re looking to return back from maternity leave to the work force, you may think about deferring some of those expenses ’til you return as well. So there are just a few planning tips to keep in mind.
So the message there is to make sure you’re talking and planning with your Pro Property Accountant.
Thank you very much.