Buy An Investment Property Now for Tax Benefits This Financial Year
Many buyers who go to contract on a property do not actually realise that the date that a property is ’sold’ is the date that the contract is dated as signed by all parties. It is not the settlement of completion date.
This means that should an investor be hoping to gain some extra tax benefits and is also intending to purchase in the next few months, serious consideration should be given to signing a contract before the end of 30th June 2010 so that they can claim tax benefits for this financial year.
If unsure how this will work for you in your situation do have a chat with your accountant so he can advise what benefits you will receive as each investor’s circumstances are different.
On another angle for tax relief do be sure that any write back you can get from a depreciation schedule is organised too. It is quite legal to back date your claim for four years and this can be a substantial sum and worth the initial cost.
If you have had a reduction in personal income this year there may be a good refund when all your income is taken into account.
An excel schedule is a good way to keep track of income and expenses on an investment property so if your figures are not up to day do keep in mind that it is only a few weeks away now until the end of the financial year.
Filed Under: Investment Strategies • Tax Tips
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