Why You Need an Accountant for Investment Property

Owning or considering an investment property offers excellent opportunities for building wealth, but it also comes with complex financial responsibilities. From tax implications to long-term financial planning, managing the finances of an investment property can be overwhelming, especially for those new to property investment. Whether you’re already an investor or just starting to explore the market, hiring a professional accountant can be invaluable in navigating these financial complexities and ensuring your investment is financially sound.

At Ashmans Accounting, we specialise in providing tailored services for property investors. Our team helps you navigate tax rules, maximise deductions, and ensure compliance with the ATO. 

By partnering with a knowledgeable accountant in Adelaide, you can optimise your investment strategy, minimise tax liabilities, and focus on growing your property portfolio.

‍4 Key Benefits of Hiring an Accountant for Investment Property

• Maximising Tax Deductions: Claim all eligible expenses, such as depreciation, interest on loans, repairs, and maintenance, to reduce taxable income.
• Managing Capital Gains Tax (CGT): Implement strategies to minimise CGT when selling your investment property, helping you retain more profits.
• Optimising Property Portfolios: Structure your property portfolio to reduce your overall tax burden and improve financial outcomes.
• Accurate Tax Reporting: Ensure compliance with ATO regulations, avoiding penalties and ensuring all income and expenses are properly reported.

‍Understanding Tax Implications for Property Owners

• Rental Income: Any income earned from renting out the property must be declared in your tax return. Accountants help ensure proper reporting of this income while maximising allowable deductions.
• Tax Deductions: You can claim deductions for expenses like property management fees, interest on loans, repairs, and depreciation of assets. This reduces your taxable income and enhances cash flow.
• Capital Gains Tax (CGT): When you sell an investment property, CGT is applied to the profit. An accountant can help with strategic planning to minimise this tax, including utilising the 50% CGT discount for assets held for over 12 months.
• Land Tax: Depending on the location and value of the property, land tax may be due annually. The amount and threshold vary by state, and an accountant can ensure compliance and help with planning.
• Property Tax: States may have varying property tax obligations, requiring careful annual reporting to avoid penalties.‍
• Accurate Record Keeping: Keeping detailed records of all expenses and income is crucial to claiming the correct deductions and staying compliant with ATO rules.

‍Long-Term Tax Planning for Property Investors

Effective long-term tax planning is crucial for maximising the financial benefits of your investment property. A proactive approach can help you reduce your tax liabilities while growing your property portfolio. Key strategies include managing capital gains tax (CGT) over time, especially if you’re planning to sell properties, and structuring your investments for tax efficiency.

Accountants at Ashmans Accounting work closely with property investors to develop tailored tax planning strategies. Whether it’s optimising tax deductions, preparing for CGT when selling a property, or ensuring that your property portfolio is structured in the most tax-efficient way, our team provides valuable guidance.

‍When Should You Speak to an Accountant for Investment Property?

‍Now. 

Start talking about your property goals and ask for guidance on what you should be considering. It’s essential to consult an accountant when you’re evaluating whether to buy, hold, or sell a property. Decisions about ownership structures and loans can significantly impact your financial outcomes. By speaking with Ashmans Accounting early on, we’ll understand your financial aspirations and provide tailored advice to ensure you’re making informed decisions throughout your investment journey.

‍Some Questions to Get You Started with Your Accountant:

  1. What is the best structure for holding my property investments? (e.g., individual, trust, or company)

  2. How will rental income impact my overall tax situation?

  3. Are there tax implications if I refinance my property?

  4. What are the effects of negative gearing on my investment?

  5. Do I need a depreciation schedule for my property?

  6. Can you help me with budgeting for my investment?

  7. Am I better off buying a new or older property?

Why Ashmans Accounting is the Right Partner for Your Investment Property

Managing an investment property comes with many financial considerations, and Ashmans Accounting is here to help you make the most of your investment. We specialise in guiding property investors through the complexities of tax planning and financial strategy. Whether you’re wondering about subdividing or purchasing a new property, we provide detailed costings, feasibility analysis, and advice on the tax consequences to help you choose the most tax-efficient path.

If you’re new to property investment, we can guide you through the process, especially in your first year of lodging a return. We’ll ensure that all deductions, such as repairs, renovations, and depreciation, are correctly claimed. Our team can also help determine whether negative gearing is the right strategy for you and how it will affect your long-term financial outcomes.

For experienced investors, we offer expert insights on maximising end-of-year tax returns. From accounting for rental income to calculating ownership proportions and market rates, we make sure you get the most out of your investment property. We’ll also help you with a comprehensive list of deductible expenses, including property agent fees, council rates, advertising, insurance, and more.

At Ashmans Accounting, our goal is to help you maximise the profitability of your investment while ensuring compliance with tax regulations. With our expert advice, you can rest assured that your investment is in capable hands, leaving you to focus on building your property portfolio with confidence.

Contact Us Now

Ready to make the most of your investment property? Contact us today for a personalised consultation and let us help you unlock the full potential of your investment property.