Investing in property can be a great way to maximise the return on your investment. Taking the time to build a strong portfolio is certainly worthwhile but one concern that often deters people from getting started is their concern over managing the taxation obligations that property investment can bring. It can be frustrating to be working hard to build an investment only to have the Australian Tax Office (ATO) take a large portion of your income. One of the best ways to protect your assets is to work with a qualified team of accountants who will help to structure your finances in the most appropriate way to minimise your tax obligations and protect your assets.
What can tax advisers do for you?
An experienced tax adviser will be able to help your business in lots of ways as you deal with the tax office, these include:
- Working on PAYG (Pay-As-You-Go) Withholding Variations
- Lodging Business Activity Statements
- Payment Arrangements
- ABN Applications
- Capital Gains Tax
- Property Disposal
- Tax Depreciation
Dealing with Tax Depreciation
Of all the things with which tax advisers can assist you, tax depreciation is perhaps the least well-understood. Your advisers will be able to use a tax depreciation schedule to help you access any tax deductions that might be applicable to you. The schedule will be used to capture the wear and tear that occurs in any building as it ages. The ATO permits investors to classify this wear and tear as an expense which they can claim as tax-deductible.
How is this tax depreciation calculated?
When you want to determine the wear and tear which has occurred on any property then you will need to work with a tax quantity surveyor who will look into the wear and tear before producing the relevant tax depreciation schedule which will be accepted by the ATO.
Working with your tax advisers
When you need help with your taxes, and in particular with your tax depreciation, then you must find a company that has a proven track record of gaining the best outcomes for their clients. Make sure that the company are able to detail their use of depreciation to earn the fullest possible deduction to your tax bill. Ask them about possible alternative structures for your finances that might yield a better outcome for your finances.
Choose a company that is prepared to work with and take a personal approach to manage your finances rather than trying to fit you into a pre-existing plan they use for all of their clients. To learn more about tax depreciation, contact a tax advisor in your area.
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