The start of the new financial year is a good time to stop, take stock and assess your investment strategy for the upcoming 12 months. Property investors need to be nimble and aware of the constantly changing market, however it doesn’t hurt to be as prepared as possible for the year ahead. Commercial property investment can generate high yields and long-term benefits, so to help with your tax considerations we’ve outlined our top three tips for FY 18/19 below.

1. Make sure you claim what you are entitled to

Depreciation is a powerful tax benefit as it can be claimed without having to part with funds upfront. It allows commercial property owners to claim tax deductions for gradual wear and tear of a building, but, many investors fail to appreciate how much tax can be saved using this approach. Make sure you investigate how to claim and when to start doing so.

2. Keep accurate records

Although keeping all of your receipts for the year may seem laborious to effectively maximise your returns next June, it’s important to record all expenditure throughout the year. If you can’t provide the ATO with a valid paper trail, you won’t be able to claim any benefits.

3. Consider CGT & GST when selling

When selling a commercial property, the Capital Gains Tax date is the day of exchange,  not settlement. All too often this is often overlooked by excited sellers with their eye on monetary gain. Avoid planning for a sale in June 2019 and push back until 1st July or afterwards. 

In contrast, you can avoid paying GST when buying or selling if a commercial property already has tenants in the site.

Tax is often a confusing area of property investment and there are a number of common mistakes that commercial investors often make. For example, GST can easily be overlooked for commercial sites. Ensuring you understand the tax basics and keep updated records will help streamline your tax process next June 2019, so it’s worth considering now.