As another financial year comes to a close, you’re probably getting everything in order to lodge your tax return. Here are our top tips for property investors preparing for end of financial year.
Understanding what is deductible and keeping a clear record of these expenses can make tax time much simpler. For investment properties consider the following:
Some of these items might not eligible for an outright tax deduction but may be depreciated over a period of time. It’s important to speak with your accountant for guidance.
If your accountant provides you with a checklist, complete it and provide the documentation that they request in an organised way – don’t hand over a shoebox filled with receipts. If you don’t have a checklist to work to, you might like to put together a spreadsheet summary and have your documents sorted into categories. That way, if you need to access a particular document you can find it easily.
Don’t be afraid to ask your accountant what they are doing and why – it will help you understand the tax implications of your investments. If you understand why your accountant needs particular things to complete your tax return, you’ll save time in preparing for the next financial year.
Take the time to read through and check your tax return before signing it.
Reference: Loan Market, Catherine Blake June 2016.