Approach tax claims the right way

End of financial year is nigh and the property investor’s thoughts turn to tax time. Or more simple, how to legally reduce that tax bill.

Here’s a tip: Prepay expenses for an immediate tax deduction.

Receive an immediate tax deduction by prepaying rental property expenses up to 12 months ahead. The payment must be for a period that is 12 months or less, ending on or before 30 June. Examples include insurance, body corporate fees, rates and interest. Check out the prepayment rules section of the ATO website for more detail.

Always review your tax position for the financial year before prepaying any rental expenses to ensure it provides, not detracts from the benefits of negatively gearing your property.