It’s coming up to that time of year again and with the ATO signaling they will be paying extra attention to investment property returns, it’s a good time to focus on getting prepared.
Sorting through heaps of receipts to figure out your allowable deductions isn’t anyone’s idea of a good time, right?
Property investment, whilst it has the potential to be rewarding it dies comes with its share of responsibilities, especially when tax season rolls around. To assist you navigate the world of tax deductions, we’ve put together a tax checklist for property investors that may help you towards a less stressful tax season.
1) Organise your documents early
Set aside some time now and start by organising your documents, rather than having to rush through it later.
Collect all necessary paperwork, such as rental income statements, property management reports, and insurance information.
There are some useful apps and tools that can help you to streamline the process.
Keep in mind the ATO still recommends you keep a backup of all your digital records.
2) Brush up your knowledge on allowable deductions
As a property investor, you’re entitled to numerous deductions. These can range from advertising for tenants, council rates, water bills, maintenance costs, and depreciation on assets.
The ATO’s Guide for rental property owners, Rental Properties 2022, can give you some insights into tax deductions for property investors.
3) Determine your assessable income
Assessable income comes from various sources, such as salary and wages, allowances, interest from bank accounts, dividends, bonuses, commissions, pensions, and rent.
Use a spreadsheet or online tool to record all your assessable income and allowable deductions for easy access by your accountant.
4) Book in with your accountant
Get in early, this time of the year for Accountants can be their busiest, so book in early to avoid disappointment. While you might consider doing your taxes yourself, enlisting the help of a tax accountant can save time and money, as they’ll know precisely which deductions you qualify for.
5) Future planning
Whilst reviewing the last financial year it provides a great opportunity to review your financial goals and put a plan in place for the year to come?
Consider refinancing your mortgage, consolidating debts, or you could utilise your equity to expand your property portfolio.
Whatever your investment strategy and long-term financial goals may be, we’re here to help you reach them.
Contact us today.