If you own shares or managed trust investments, here are some of the tax deductions you may be able to claim.
- The cost of bank fees paid on the account you deposit the dividends or distributions into and pay expenses out of and also on any bank loans used to finance the purchase of the investments.
- The interest paid on any loan taken out to purchase the shares or managed trust units (you can only claim interest on a loan that is specifically taken out to purchase your investments and you should keep this loan separate from loans taken out for personal purposes).
- The cost of loan establishment fees paid to your bank to set-up the loan used to purchase the investments or if you refinance your loan with a different lender.
- The cost of ongoing management fees, retainers and amounts paid for advice relating to changes in the mix of investments that you hold, but not the cost of drawing up a financial plan (unless you are running an investment business).
- The cost of any specialised investment magazines or journals you purchase.
- The cost of stationery, postage, telephone calls and internet access related to managing your investments.
- The cost of running a home office to manage your investments (this can be claimed using an hourly rate provided by the Tax Office – you should estimate the number of hours you spend in your home office in relation to your investments during the year).
- The cost of travelling to attend meetings with financial advisers and stockbrokers or to attend shareholder meetings or training in relation to your investments (this may include travel by car – you should provide us with the number of kilometres you travelled to and from each meeting or event – bus, train or air travel. You can also claim a deduction for the cost of accommodation and meals purchased if you need to stay overnight to attend the meeting or event).
- The cost of purchasing or repairing any equipment you use to manage your investments (e.g. laptop, computer, printer, scanner, electronic organiser).
- Any other expenses you have paid that relate to your investments (we will check if these are allowable tax deductions when we prepare your return).
Make sure you keep receipts for all purchases that relate to your investment property, even if they are not listed above. That way, when we prepare your tax return we can decide whether you are allowed to claim a tax deduction for them or not.
Do you have more questions about tax deductions and/or your investments then give us a call today! It’s never too early to start tax planning!