I've started working on the figures I'll need for completing my 2022-23 FY tax return. One of my new items for this year's return will be my investment apartment. The purchase was settled in late Feb and I was able to rent it out immediately. So for FY23 the relevant figures are:
Settlement date: 24 Feb.
Pro-rata days for FY2023: 127/365 (used for calculation of purchase costs that can be claimed over five years)
Items paid at settlement that are deductible this FY:
Council Rates: $621.37
Water Rates: $151.23
Land Tax: $1,104.11
Strata Insurance: $654.28
SUB-TOTAL: $2,530.99
Items paid at settlement that are deductible over 5 years:
Doc Processing fee: $100,00
Property Search fee: $47,40
SUB-TOTAL: $147.40
pro-rate for FY23: $10.26
TOTAL $2,541.25
Mortgage Interest paid: $17,133.82
Interest rec'd (on deposit etc) $1,754.61
Rent Received ($850/wk) $12,750.00
Rent Expenses:
Letting fee: $935.00
Insurance: $411.00
Letting advertising: $220.00
Managing Agent fee: $701.25
Managing Agent Admin: $44.00
NBN rebate to tenants: $150.00
Strata Levy: $2,118.20
Water rates: $320.99
TOTAL $4,900.44
Depreciation (DVM) FY23: $9,276.55
TOTAL: $33,852.06 $14,504.61
Net LOSS FY23: $19,347.45
Tax refund (@32.50% marginal rate): $6,287.92
Now that I know the current figures for insurance, strata levy, rates etc. I will be able to estimate my expected tax deduction for FY24 and submit a PAYG withholding tax variation form so I pay less tax out of each pay, rather than receive a large tax refund. This will help improve the monthly cash-flow situation. The variation takes about 4 weeks to process, so I should try to get it done this coming weekend.
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