Tax tips for property investors

Propell National Valuers have compiled a list of top tips to help property investors minimise tax payable and maximise deductions and returns.

The property experts said critical steps include actioning expenses now and researching eligibility for tax benefits.

The list also suggests investors keep detailed records of property expenses, refer to tax depreciation schedules, understand capital gains tax concessions and investigate the Australian Taxation Office's PAYG withholding variation.

Propell National Valuers chief executive Bart Mead said simple planning and research could avoid losing out on cash entitlements this financial year.

''Many smart investors possess a great understanding of the property market but fail to capitalise on significant potential tax savings,'' Mr Mead said.

''While tax strategies should be a year-long process, we know that June presents the last chance for end of financial year activity.

''Property investors should do some research into what they can claim, and look to pay any related costs now so they can claim these expenses and enjoy less time 'out of pocket'.''

Mr Mead said investment properties can be an expensive asset and lack of preparation can mean losing out on entitlements.

''Income-producing properties incur considerable expenses throughout the year and investors are entitled to claim these costs,'' he said.

''Let's say your body corporate fees are $600 per quarter; this could mean a possible $2400 you can claim in just one area.

''You can also claim bank fees associated with your loan - these are often charged every month and some simple research will show you how much you have paid over the year.''

Tips to maximise your 2011-12 tax return

1. Pay expenses in advance

2. Time deduction claims carefully on negative geared properties

3. Be aware of deductible expenses

4. Bring forward maintenance and repairs

5. Keep detailed records

6. Get expert advice on tax depreciation

7. Be mindful of capital gains tax

8. Utilise self-managed superannuation

9. Investigate PAYG withholding