With the end of the financial year fast approaching are you doing everything that you can be doing to reduce the amount of tax you have to pay? Expert Noel Whittaker, author of Making Money Made Simple, has provided us with a few of his tax saving tips!
“If you have deductible expenses such as repairs and maintenance on investment properties, try to bring them forward so that you will enjoy your tax deduction in this financial year.
You can also bring forward expenses by prepaying 12 months interest on your investment loans. Pre-paying a year’s interest on a loan of $300,000 may cost you $15,000, but – depending on your tax bracket – you could get as much as $7,000 back as a tax refund. This strategy requires negotiation with your lender. You can’t just bank the equivalent of a year’s interest into the loan account – all the lender will do is take one month’s interest and credit the rest to the principal.
For capital gains tax, remember that the relevant date is when the sales contract is signed. Therefore, just deferring signing a sales contract until after 30 June can defer the CGT by a year, giving you time to offset it. It also gives you an extra year’s use of the money you owe the tax man.”
Owning an investment property will not only help you now with your financial burdens by providing a constant source of income in the form of rental yield which may offset some of the mortgage repayments, but it will leave you with an asset that may be worth selling once you reach retiring age.
Talk to our team today about how an investment property could help reduce the amount of tax you pay!
Full article: https://www.huntervalleynews.net.au/story/6195881/ways-to-reduce-your-tax/?cs=7094
