First Home Owner Tax Breaks to Take Advantage of
At First Home Buyers Direct, we know that buying your first home is not an easy feat. It can take years to save for your mortgage and a lot of research and hard work to find the right home for you. There are extra costs, zoning rules and even Council applications that may be rejected. But we also know that it’s not all hard work.
We realise there is great joy in owning your own home. From the financial benefits of a smart investment property to the freedom from indifferent landlords, building memories in a space that you have created is a dream for many.
And let’s not forget the tax benefits of owning your own property. Below we have listed few of the perks to think about during tax time.
1. Working from home
If you work from home, this will no doubt allow you to receive a generous break at tax time. For renters and homeowners alike there is an opportunity to claim if you fit in any of these three categories:
- You have a designated room or space in your home purely dedicated to the work you do at home. This can be a study or a spare room.
- You may also be able to claim you are an employee but often work from home.
- Lastly, if you run a business from home, and have no other office or work space outside of the home, you will also be able to claim a deduction.
If you fit into one of these categories, you’ll be eligible to claim a percentage of your utilities expenses, phone bills, depreciation of office space (which includes curtains, carpets and even light fittings) and furniture or stationery bought for work purposes. You will also be able to claim occupancy expenses such as rent and mortgage interest.
2. Rental Risks/Rental Gains
There are obvious risks and gains of investing in a rental property. But if you decide to take the plunge, you will be able to claim on the interest charged on your loan. Renting out your home will also give you the opportunity to claim depreciation on any assets (such as furniture and whitegoods) purchased for the rental property, renovations and any repairs completed while you are renting it out.
3. The Positives of Negative Gearing
Negative gearing is a term that you might hear a lot around election time. What it provides is the opportunity to offset your income tax if you make a loss on a rental property.
There are loads of financial benefits when owning your own property. Get in contact with us today if you would like to hear more.
Posted by First Home Buyers Direct on 09 December 2016 | 0 comments
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