Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Save Money with Expert Tips

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Save Money with Expert Tips

Article excerpt

ARE you getting all the money youare entitled to in your tax return?

Everyone has to pay tax, but why should you pay more than you owe? Without even knowing it, you could be giving away hundreds, even thousands more than you need to. In this yearas edition of 101 Ways to Save Money on Your Taxa[pounds sterling]Legally!, Adrian Raftery, gives some substantial money-saving tips to help minimise tax debt while maximising any tax return.

Incorporating changes from the 2013 Federal Budget, this tax book will be helpful whether using a tax pack, lodging online or seeking the help of a professional.

The book covers key areas surrounding finances for all taxpayers: family concessions, employment, education, investment properties, shares, superannuation and business.

aThere are so many different types of government benefits and tax concessions that itas no wonder we donat understand what we are entitled to. It is confusing and consequently some people are not claiming everything they should be entitled to,a Mr Raftery said.

Top 10 tax tips

1. Initial repairs: A common mistake is to claim initial repairs or capital improvements as an immediate deduction. Initial repairs to rectify damage, defects or deterioration that existed at the time of purchasing a property are generally considered capital in nature and not deductible, even if you carried them out to make the property suitable for renting. Depreciation could be claimed on this expenditure as a capital works deduction over 40 years.

2. Prepay interest: If you are expecting that you will have a lower income next year (due to factors such as maternity leave or redundancy) then why not prepay interest for up to 12 months in advance before year end on your rental property and reduce your higher income this year.

3. Depreciation schedule: If your investment property was built after July 18, 1985 then it is definitely worthwhile organising a depreciation schedule from a quantity surveyor. You should be able to recoup their fee in your first tax return as deductions can be in the thousands each year.

4. Travel to see your property: The old wivesa tale of claiming two trips per year is hogwash. …

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