Tips to get you the most out of your investment in 2010:

• Be prepared to Substantiate Your Claim
  Make sure you keep receipts to prove your deduction and show why the expense was incurred to derive assessable income.

• Carry out inspections
  Carry out property and pest inspections and ensure any work required is carried out before 30 June 2010.

• Prepare a depreciation schedule
  Having a depreciation schedule prepared by a qualified quantity surveyor may help to add a significant tax deduction for depreciation. The cost is also tax deductible and helps substantiate any capital allowance claim you may have.

• Pre-pay interest
  If allowed by your lender, this is a strategy to defer the payment of tax. Factors such as anticipated future income, interest rates and cash flow impact should be considered fully beforehand.

• Increased CGT Monitoring
  The ATO has recently ramped up data matching to help identify undisclosed capital gains, including gains from disposing of assets to invest in superannuation. Ensure any capital gains on the sale of property are correctly recorded.

• Borrowing Costs
  Borrowing costs may be written off over the lesser of five years or the term of the loan.

• Fixtures and fittings
  Purchase fixtures and fittings that cost less than $300 to claim an immediate tax reduction.

• SMSF borrowing to buy property
  SMSFs are able to borrow to invest, creating opportunities to acquire assets and increase fund investments. There are strict rules that need to be considered before making any purchase using this strategy.

• Renovations by previous owner
  You may be eligible for a deduction for depreciation on the cost of improvement by a previous owner, provided the items are identifiable and itemised in a depreciation schedule,

 For more information on Rental Properties, give our office a ring. Our friendly staff can assist you.