When investing in property, it is not only essential to choose the right property; you will also need to be aware if you use your property to earn income at any time, you will have tax obligations and entitlements. Below are some tips to help you get it right at each stage of the journey.
Keep Accurate Records
You need to keep proper records over the period you own the property. Keep the right records for each stage of your journey to ensure you’re able to claim everything you’re entitled to.
Buying Process
Documents needed during the buying process:
- Contract of purchase
- Conveyancing documents
- Loan documents
- Costs to buy the property
- Borrowing expenses
- Title deed
During Ownership
Documents needed during ownership:
- Proof of earned rental income
- All your expenses
- Periods of private use by you or your friends
- Periods the property is used as your main residence
- Loan documents if you refinance your property
- Efforts to rent the property out
During the Selling Process
Documentation needed during the selling process:
- Contract of sale
- Conveyancing documents
- Capital improvements
- Sale of property fees
- Calculation of capital gain/loss
For more information about how tax applies to property investing, please contact the Business Mantra experts and we are glad to assist you. You can call us on (08)9242 3555 or email us at info@businessmantra.com.au.
Source:ATO