12 Steps to Christmas – Property Taxation and Accounting
Welcome to our 12 Steps to Christmas, our guide to advance your financial health by Christmas 2024.
End of financial year is a crucial time for Australian homeowners and prospective home buyers. Tax time is an essential step to the loan approval process, ensuring that your income, taxation and investment strategies are properly aligned with your property goals. A great Mortgage Broker and Accountant, will set you on the right path to maximising your income and minimising your tax payable.
In this edition of the 12 Steps to Christmas, we are lucky enough to sit down with Greg Rundle from 360 Private and chat all things property investment, taxation and accounting. We hope this video series has something for everyone, setting you up to maximise your position for the next financial year.
Lending & accounting
Why working closely with your Mortgage Broker and your accountant is integral to appropriately structuring your income, superannuation and asset position heading into a new financial year. Find the balance between minimising tax and maximising income for borrowing.
Business vehicles & assets
There are taxation benefits to purchasing vehicles and assets in your business. Instant asset write off, depreciation, interest and fuel deductions. There are a number of claimable tax deductions that are achievable, in many different forms.
Negative gearing
Negative Gearing is where the costs of owning and managing an investment property exceeds the rental income received, with the loss claimable as a tax deduction on your taxable income. Greg highlights what you need to know about negative gearing at tax time.
Interest in advance
A popular tax strategy is to pay 12 months interest in advance before June 30th, and claiming that interest as a tax deduction in the current financial year. Aside from the tax benefits, this can also enable an investor to access cheaper fixed interest only lending products.
Investment depreciation
Depreciation is a key tax concept you should understand when investing in property. A depreciation schedule will become a key tool in your accounting kit, outlining the rate at which your assets decline in value and the deductions claimable on your tax bill come June 30th.
Superannuation
How to maximise your superannuation contributions to increase your tax deductions and increase the investment assets within your superannuation fund. We discuss how much extra you can contribute and the benefits related to additional superannuation payments.
SMSF lending
SMSF offers a wider choice of assets in which to invest, including property and direct shares. This creates capacity to exercise control over the timing of taxable events. Some even find self-managed super funds to be more transparent and tax-efficient than other products.
Capital Gains Tax
When you make a profit on selling your investment property, you will be subject to a Capital Gains Tax. A capital gain is defined as an income by the ATO, so understanding the tax implications for selling an asset at a profit is an important tax concept to be aware of.
Family trust investments
A family trust can lead to effective outcomes in relation to estate planning, taxation benefits, profit distribution and asset protection. A family trust is a fantastic structure to safely grow and protect the wealth accumulated within your family and business.
Timing an investment sale
One of the simplest, but hardest investment concepts is knowing when to sell your investment to maximise your profit and minimise your tax payable. Working closely with your Accountant and Mortgage Broker will help you effectively plan the life span of your investments.
Thank you 360 Private
We are extremely fortunate to partner with such a professional and trustworthy organisation in 360 Private. Look no further for Strategic Advice, Tax & Business Services, Investment & Portfolio Advice, Risk Advice, Succession & Estate Planning, and Superannuation.
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To chat about your property goals, simply call 08 8300 8300 or click contact us today.
Important Information
*The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone’s personal situation is different, this article should not be taken as advice. Market commentary is based on recent economist reporting and references can be made available upon request.
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