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 sometimes application rejects. But, we also know that it’s not all hard work.
We also know the great joys that come with owning your own home. From the financial benefits of a smart investment property, to the freedom from angry landlords and the opportunity to make the house your home, building memories in a space that you have been able to build, own and make yours. But there are also some tax benefits to owning your own home that can often be looked over.
We can all do with a little bit of breathing space at tax time. This can be a stressful time, especially when you are working to pay off a shiny new mortgage. Below we have listed out a few things to think about next tax period.
If you work from home, this may allow you to receive a break a tax time. For renters and homeowners alike there is an opportunity to claim if you fit in any of these three categories:
It might make sense to take your work home with you
If you do fit into one of these categories you may be eligible to claim some utilities expenses, phone bills, depreciation of office space, which includes the structure, curtains carpets and even light fittings. You may also be able to claim on your occupancy expenses such as rent, mortgage interest and more.
- 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 might also be able to claim even if you don’t have a dedicated space. If you are someone who comes home from the office, or the job site and completes more work from around the house (e.g. lounge room, kitchen) then you would fit in this category
- Lastly, if you run a business from home, and have no other office or work space outside of the home, you might also be able to claim a deduction.
There are the obvious risks and gains of investing in a rental property. But if you decide to take the plunge you might be able to claim on the interest charged on your loan. Renting out your home will also give you the opportunity to claim interest paid on loans relating to depreciation on any assets purchased for the rental property, renovations as well as any repairs complete while you are renting it out.
Rental Risks/Rental Gains
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 when or if you make a loss on a rental property. This is less of a benefit, but will soften the blow when it comes to your first home.
The Positives of Negative Gearing
If you rent your entire home, or even just a one room, for some or all of the then you might be eligible to claim on management expenses as well as any costs associated with maintenance. If you rent out some or all of your property, you will also be able to claim and borrowing or depreciation.
Rental Property Expenses Claim
So even though things might seem tight now, and your hip pocket might be hurting, there is breathing space up ahead. As you move closer to this amazing, and challenging commitment, make sure you look into all the financial requirements required in and around the purchase of a home. Get in contact with us today if you would like to hear more about this process.
Posted by First Home Buyers Direct on 09 December 2016 | 0 comments
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