3 Claims That Property Investment Tax Services Target

Most people looking to buy a property as a stepping stone to wealth creation often question whether real estate is a worthwhile investment. It can be attributed to the high prices attached to real estate properties. The simple answer to potential investors who doubt the returns on property investment is to consider the role that property tax services play in maximising profit. Rather than focus on the initial investment, an investor should zero in on the potential deductions that a tax accountant can claim on a property. This article highlights claims that property tax services target.

Depreciation Deductions

Buildings deteriorate over time, which affects the value of your investment. The only way to maintain a property's value is to repair or renovate it, which costs money. However, you need to know that the loss in property value due to depreciation should be claimed every financial year. Tax services are crucial in this regard due to the amount of money you can claim based on depreciation. Notably, tax services will go through all your property records and ensure that you claim depreciation deductions. Therefore, you can earn thousands of dollars without spending any money on your property.

Holding Costs Deductions

When you buy a lot with intentions of property development, you will pay interest on the land and during the different phases of construction. The interest you pay before you start earning from property development is referred to as the holding cost. Sadly, most newbie investors do not know that holding costs are tax-deductible. Therefore, they prefer to invest in land that is already developed, not knowing that they are be missing out on holding cost deductions. However, engaging the services of a tax consultant before purchasing a property ensures that you recoup the money spent on holding costs.

Related Property Loan Costs

Interest on a mortgage is arguably the only significant cost that investors look at when buying a property. However, other associated expenses can quickly drive up the price of a loan. Tax consultants target these costs in a bid to maximise the total property deductions. The most significant overheads that a tax accountant target include mortgage broker fees, loan establishment fees, and mortgage insurance fees, among others. The best part is that claims on borrowings are made over an extended period; therefore, they can add up to a significant amount, depending on the value of your property.

For more information about investment properties, reach out to a local company like Anthony Gigacz & Associates Pty Ltd.

About Me

Dealing with tax on deceased estates

When my husband died last year I was very stressed out. I didn't realise how much paperwork was involved in the whole process and it didn't even occur to me that his last tax return would need to be lodged and that we would have to deal with tax on his estate for the time it was earning income. It was a very fraught time and I was just so lucky that my tax agent could help me to get the right paperwork lodged. This blog discusses the types of tax that you need to account for in deceased estates.


Latest Posts

17 March 2021
Tax planning is one of the simple business strategies that can transform your business from registering losses each year to making tangible profits. I

23 October 2020
Most people looking to buy a property as a stepping stone to wealth creation often question whether real estate is a worthwhile investment. It can be

7 February 2018
When you hear the words 'financial planning', you may think that this is something which only large corporations need to do. However, financial planni