At the end of the fiscal year, it's also time for people to claim tax returns. For real estate investors, in addition to the daily receipts and items that can be applied for tax refund, there are more professional tax rebate skills.
Tax experts give the following eight tips for tax refunding of property investment:
1. It may be a good opportunity to avoid tax that recently beginning to consider refinancing. Financing before the end of the fiscal year, income and expenditure situation will affect the amount of payable tax. It is important to note, however, that if you want to offset the interest payments on an investment mortgage, you must maintain a clear accounting of the mortgage and refinancing amounts initially used to purchase the project. One caveat: always check your account before refinancing to make sure your self-occupying home loans and investment home loans are not under the same mortgage, which can cause serious tax problems.
2. Capital loss can occur in any fiscal year and capital loss can be transferred to the next fiscal year. If you have capital gains, then capital losses cannot offset other income such as business transaction income. With only a month to go, it may be too late to check whether your real estate investment is worth doing the capital loss to offset gains. You cannot reduce your losses. So be sure to check your portfolio in time and calculate your losses and gains.
3. When the assets are held for more than 12 months, the capital gains can be discounted by 50%. Remember, the relevant date for calculating capital gains is the contract date, not the final delivery date of the house.
4. If you already have an investment plan, consider prepaying the next year's bank interest to get an immediate tax break in the 2013-2014 fiscal year.
5.Get a tax break by prepaying next year's income insurance premiums.
6.If you have a plan to repair your home, it is recommended that you pay for future expenses by June 30. But it's worth noting that the first thing you need to know is whether your repair plan is within the range of your tax liability that can be offset.
7. Depreciation, supporting facilities, maintenance and repair parts, administrative expenses and rental losses of the house can be used as tax deductions.
8. Use a debt recovery strategy to reduce your total annual interest payments through an offset account at a financial institution.
Declare: parts of this article come from the website, you can specifically analyze the specific case.