What Australian Property Owners Need To Know About Taxation?

Investing in the real estate market is a popular thing to do regardless of which country you live in. After all, land and property value is almost always on the rise, and just owning a certain building for a few years should be enough to justify the amount you invested in it (including its purchase and the various fees you paid for its maintenance over the years), as you will likely be able to sell it at a much higher price.

While it is true that dabbling in property investment is something everyone needs to look at, there are certain things you need to be aware of before going on ahead. Taxation is especially worth a look: many people get in trouble with local authorities over wrong tax reclaims. In order to avoid that (and to save some money on taxation as well), take a look at the following points:

Be Accurate

Ensure you submit correct details when it comes to your income, taxable amount and what you can claim back as tax refunds. Even small inaccuracies can get you easily noticed, as tax offices have their own data to compare against your own to verify whether it is genuine.

Get an Expert to Help You

Hiring a quantity surveyor is beneficial for not only businesses but private property owners as well. They can help you with estimates on depreciation as well ways in which you can use it to your advantage to get tax refunds. From this, he or she can calculate just how much you can expect to save as tax deductions at the end of the year.

Depreciation Schedule

While a house depreciation schedule may seem like a surplus to some, you will definitely need one if your home was built during the past forty years or so. This method of claiming a tax refund is actually quite obscure and underutilized, but it may help you pay a considerably low amount of taxes year after year.

Remember to Mention Foreign Income

One mistake that people who have long been out of Australia make is failing to mention any of their overseas earnings, expenses and properties. The government is currently on the lookout for this category of people, with an intent of placing hefty penalties quite soon. Despite working overseas, you should still lodge a tax return each year for as long as you are an Australian citizen by law.

Know What You Cannot Claim

As much as there are things you can use to claim tax refunds, there are others which are simply not eligible. Some common examples include personal expenses related to the use of a private property for yourself or your family members and whatever costs may be related to the purchasing and sale of your property.