Increase Property Investment Portfolio

If you are a property invester but know nothing about taxes, it's time for you to start learning. Being awareless of sound tax strategies make thousands of Australians miss out on money saving opportunities; you can avoid being like them just by following these simple tips.

Keep Expense Receipts

Any financial advisor will tell you it's very important to keep all receipts for a minimum of five years when dealing with investment properties or any other type of deduction you claim. Doing so can help you in claiming deductions for assets that have declined in value and ensure you have all important and relevant information in the rare instance you may be audited. Some examples of these depreciating assets include stoves, refrigerators, TV sets, hot water systems and various window hangings like curtains and blinds. By having receipts available demonstrating when these items were originally purchased, you can more successfully claim them as deductions.

Get A Depreciation Schedule

Although there are many examples of things that cannot be claimed as deductions, certain travel expenses and expenses that have to do with the private usage of the property are frequently overlooked because investors have not sort the correct advice nor thought of getting a depreciation schedule. The average cost of getting a depreciation schedule is about $500, but it can save you a lot of money down the road.

Things Can't Be Claimed

There are certain costs that cannot be claimed as deductions. Knowing the difference between what is and isn't allowed can have a tremendous impact on your success as an investor. In short, get a good tax adviser and depreciation schedule, keep your expense receipts for at least five years and understand what kinds of costs cannot be claimed as deductions and the best way to know for sure is to always double check with your tax adviser.