In regards to this years tax return , i am just wondering how much would be issued back from my investment propety, This includes body corps approx $5000 rates,interest on loan, mortage insurance etc… any help would be appreciated.thx
Hello gocoastal
Sorry but no idea what your question is.
Can you please re phrase and expand it.Would like to help
ElkaOk sorry.
Hope this helps-
When lodging this years tax return , approx how much could i intend to claim back on my IP,It is negative geared, has body corps, rates, legal fees ,mortage insurance etc… Eg would i expect to get 50 percent of my expenses back….Just curious, as i went into the tax accountants the other day, the young tax accountant, had never done an IP tax return before, and i get very very minimal of all my expenses from throughout the year..Seems very very not worth having an IP.??
in general terms, add up all your deductible costs and depreciation, subtract your rental income , balance if your nett loss . Reduce your general income by the amount of the nett loss, recalculate tax on the reduced income. Roughly the amount of tax you should gain is the difference between the two tax numbers…….this is assuming you have not put in a tax variation to have your tax reduced during the year rather than waiting until tax return time.
mm ok thanks.. Yes seems unworthwile to have IP, in my case..thanks
If your accountant has never done a tax return involving an IP before are you sure you're claiming all the allowable deductions?
Making sure you claim all the depreciation you can is very important as this is not an out of pocket expense.Here is a link to the ATO site where you can download a paper called Rental properties 2007 – 8 which may be of help to you.
Ask for a more senior accountant to review the tax return with you before it is lodged.
It totally depends what tax bracket you are in – if you're in the 30% tax bracket, then you will get roughly 30% of all of your property expenses back in your tax return. Depreciation can help bump this figure up. I would definitely speak to another accountant who has more experience working with IP's, there are loads of deductions available to us.
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