Excellent tips can maximize the tax refund from rental property

​1. Initial repairs: The common mistake is a capital investment as an immediate deduction. Repair to rectify the damage, defects can exist a property purchase are considered in nature, but not deductible and make suitable property for renting.
2. Prepay interest: Expecting the lower income in the next year, then advance rental property on before end year and reduce high income in this year.
3. Depreciation schedule: After 18 July 1985, property will organize a depreciation schedule from a quantity surveyor and each year can able to recoup the fee in tax return.
4. Travel to see your property: The purpose of many trips is genuinely inspect the property.
5. PAYG withholding variation: Over the last 12 months can struggle and negative gearing with cash flow. The mini tax return called PAYG withholding variation and each pay packet has less tax.
6.  Foreign investment property: The ATO can disclose any income that receives on worldwide income tax as an Australian tax resident. These properties called negative gearing and deduct the property like interest, repairs, insurance.
7. Keep your receipts: The ATO make contact with taxpayers with rental property and increase an audit activity. The ATO motto is no receipt = no deduction.
8. Minimize capital gains tax (CGT): To sell the property and gain a capital or exchange contract to defer tax for another year. Investment property is more than 12 months can reduce half CGT.