Here’s Amanda’s advice and tips:
Buying an investment property can be a daunting matter so our advice to you is to surround yourself with experienced professionals to ensure the transaction is stress free, tax effective and will assist in creating long term wealth for yourself and your family. To help you on this very significant journey, we have 3 tips on why you need to speak with your accountant before you sign on the dotted line….
- ask your accountant what is the the best structure to buy the property in? Traditionally people tend to buy a property in their own names however there are so many other options these days such as trusts and self managed superannuation funds. These structures may offer better tax and/or asset protection benefits
- ask your accountant if it is worthwhile to obtain a quantity surveyors report? The ATO acknowledge that there is certain wear and tear on an investment property and they allow taxpayers to make a claim for depreciation and building write-off. If your property is eligible, it is a great way to increase the property’s annual tax deductions without having to actually spend any money
- ask your accountant whether it would be appropriate to apply to the ATO for a PAYG withholding variation application. Basically instead of getting your tax refund at the end of the year when you lodge your tax return, you can get it progressively during the year. The ATO calculate the likely amount of your refund and then advise your employer to deduct less tax than normal, which will increase your weekly, fortnightly or monthly pay. This may assist with your cashflow.
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