FIVE: Lower your tax burden! The next thing to do is to lower your taxes. Through our sister website Property Tax Portal, I continuously hammer home the need to lower our taxes. In order to boost cash flow and lower taxes you need to make sure you keep all of your property receipts. Why? Because generally speaking each non-capital expense that you incur for your property business can be offset against your rental income. So keep a log of all property-related expenditures. Too many landlords don’t keep hold of their receipts and then end up paying too much in taxes. Expenses like decorating, repairs, travelling, phone calls and text messages do not seem like a lot at first but come the end of the year, on a number of properties, when all are amalgamated together, you will see that they are actually quite a significant amount. These expenses can be offset against your rental income, which could be the difference between paying a tax bill and having no tax to pay at all. Golden rule – individually, costs might seem minor (like the telephone calls, etc) but collectively they can be the difference between a zero tax bill and an unnecessary one.
Posted on: Wed, 28 Aug 2013 22:48:17 +0000
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