Over the last 12 months we have noticed an increase in the number of clients investing in the property market.
We see many clients missing out on deductions on their property as they have not kept the necessary paperwork on their rental properties through the year.
Here is a simple checklist that will maximise the deductions for your rental property.
When purchasing your rental property, my biggest tip is to document all the costs for the purchase at the time. It’s a busy time, so it would be easy not to record all of the costs, but that means you are missing out on your deductions!
Keep all of the costs for the purchase in a permanent file (even if you will initially live in the property). You will be amazed how all the little purchase costs add up. Costs can include:
- pest inspections
- transfer fees
- legal costs
- bank fees
- real estate costs
- gardening expenses
- maintenance work required to rent out
Use this simple checklist to ensure that you are maximizing your claims on your rental property. By keeping good records, you may also reduce future tax liabilities on the sale of the property.