Property Investors
Property investors range from independent astute experienced investors through to first-timers. Investment properties can include residential, commercial and also foreign property. Each has different tax issues. Each investor has very distinct needs, but both require the support of an experienced and trusted accountant. We have been providing support to property investors for years. Our experienced financial experts help devise the best investment strategies for each individual client.
Existing Property Investors
Many issues impact on the tax issues for existing investors:
- Quality capital gains tax records to minimise future tax costs
- Claiming maximum depreciation & capital allowances
- Residency changes
- Eligibility to the "Main Residence" CGT exemption
- Interest deductibility
- Land Tax
- Improvements v's repairs
We have extensive experience with investors and can guide every client concern and assist with preparation of annual tax returns that maximises refund opportunities. This can include submission of a PAYG Variation so that employer tax deductions are reduced each month rather than waiting until lodgement of the annual tax return/s.
Trap # 1 One of the common mistakes we see is investors without a depreciation schedule from a quality quantity surveyor. Some taxpayers baulk at the cost of $500-$800 however this ignores the loss of tax deductions which can be around $5,000 per year for up to 40 years. Imagine being able to depreciate "common property" like a pool of a lift or even the car-park and then pay no CGT later....Maybe you need to talk to us if this may be you. Our quality surveyor guarantees that if they can't depreciate the assets you don't pay for their report. How can you lose?
Trap # 2 Is your existing accountant a property or wealth 'specialist' but they behave more like a spruiker? Maybe it's time for some independent advice. There is no magic in a specialist trademarked property trust and the risks of a hybrid trust may need to be fixed quickly. We know the issues and can assist.
We also provide guidance on property development. The decision to develop an investment property can have significant tax implications and advice should always be obtained early. Structuring a development so that the land ownership and the development take place in different entities is critical and can avoid serious risks.
We welcome enquiries from prospective new clients.
New Property Investors
High rates of personal income tax and lucrative tax treatment has created an environment where many people are considering geared property investment as one of the elements of their investment plans.
However, there are also plenty of sharks. Having the support of an experienced accountant that also is supported by financial planning services makes sense. We are the experts when it comes to safer investment strategies. We can support and advise on your proposed acquisition so that risks may be minimised and that the maximum long term tax outcome is received.
We provide at no additional costs, all investor clients with our personalised Guide to Negatively Geared Property. This guide is over 40 pages of detailed information which explains the basics including :
- Overview of what negative gearing is and how it works
- Where to buy, what to buy
- Finance options
- The 13 steps to negative gearing
- Record keeping
- We include a copy of our negative gearing software free
- Rental deductions - Upfront, over time and non-deductible
- Capital gains tax, land tax and other issues
During our initial 1hr meeting we will model your target property or a specific property you have located and give you a projection report. We provide that report and the above Guide as part of our service to eliminate surprises.
We will also provide advice on structuring for ownership and explain the pitfalls and benefits of the alternatives. Getting it wrong can costs tens of thousands of dollars later. The first issue you need to understand is why individuals should generally avoid owning a rental property in their own names. Very few accountants understand what this means.
- Tenants in Common
- Joint tenancy
- Property trust (including a NSW Land Tax Unit Trust)
We work with some leading real estate agencies to assist their clients and welcome enquiries directly from agents or prospective clients.