Own an investment property and yet to lodge your return? We've got you...
With the ATO ramping up scrutiny of rental property claims, accurate financial management is now more essential than ever.
Why Peard Real Estate is your trusted partner through tax season:
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We empower you with insights to confidently manage your tax position and maximise legitimate deductions.
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With advanced data-matching and AI systems in play, the ATO is flagging rental income, repairs, claims for part-year usage, and record-keeping more closely than ever.
What ATO is focusing on in 2025:
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Complete income reporting — includes rent, recovered tenant costs, fees, even retained bond funds.
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Repair vs. improvement — repairs are deductible now; improvements must be depreciated over time.
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Correct expense apportionment — essential when properties are rented only part-year or used personally.
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Strong record‑keeping — your primary audit defence.
Common tax pitfalls we help you avoid:
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Treating initial repairs as immediately deductible rather than capital works.
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Trying to deduct all borrowing costs upfront when expenses over $100 must be spread over five years.
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Overlooking personal use periods and claiming related expenses inappropriately.
What good record‑keeping looks like:
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Keep documentation for at least five years (or five years post-sale for CGT purposes).
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Store purchase/sale proofs, income, and every expense—interest, rates, repairs, management fees, insurance, maintenance, improvements, utilities.
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Scan receipts, save in a cloud folder, and use tools like ATO’s myDeductions for real‑time expense logging.
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Ensure every expense entry includes supplier name, date, cost, and service/item description—particularly on invoices.
Understanding repairs vs improvements:
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Repairs restore original condition (e.g. tap fixes, repainting); these are deductible immediately.
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Improvements enhance or change the asset (e.g. kitchen remodel, new deck, full fence replacement) and must be claimed over time.
Thinking beyond tax returns:
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Negative gearing allows rental losses to offset other income, reducing tax but banking on long‑term capital growth.
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CGT strategy matters—accurate record-keeping increases your cost base and can reduce tax on sale, with eligible 50% discounts for holdings over 12 months.
At Peard Real Estate, we take pride in helping our investment clients optimise tax outcomes through careful property and financial oversight. A well‑managed tax return not only relieves stress now—but supports smarter decisions and stronger returns into the future.
(This is general guidance only. We recommend consulting a registered tax professional for tailored advice.)