As June 30 approaches, it is advisable for commercial property investors to make strategic adjustments to their tax strategies to enhance returns. One effective approach is to prepay expenses such as loan interest and insurance premiums, which can immediately reduce taxable income. Maintaining detailed tax depreciation schedules, particularly for older properties, helps ensure that no potential deductions are overlooked.
Finalizing planned repairs and necessary maintenance before the end of the financial year allows for immediate claim deductions, contrasted with capital works deductions which are spread over time. Examining loan structures is also crucial, particularly if there have been recent refinancing actions or equity withdrawals. It is essential to clearly differentiate between deductible and non-deductible debt to minimize costs.
Writing off unused plant and equipment can provide immediate tax deductions. Moreover, increasing superannuation contributions within the allowed limits using reserve cash flow might prove advantageous. Consulting with accountants before the end of June is crucial, rather than delaying the process. This preparation is key to managing a property portfolio like a business, utilizing tax strategies to improve financial outcomes.
For more details, visit the full article at Australian Property Investor Magazine.