With the end of financial year knocking on our doors soon, investors can get the jump on the tax man and get ready for his arrival. Here are some easy tips investors can look into to ensure that their finances are all in check.
With landlords coming into more scrutiny than ever from the Australian Tax Office, investors need to make sure that they are doing everything above board without cutting too many corners.
Here are five quick and easy tips for investors to make tax time a breeze are:
1. Consult your accountant
The tax system around property can offer great benefits depending on your property and your situation. A good accountant will save you $1,000’s by ensuring that you get the most from your set up
2. Put everything in one place
A somewhat obvious tip, but make sure every tax-related document is all in the one spot, as opposed to all over your home. A good property manager will have this organised for you with their EOFY reporting that will make the process easy for you
3. Go over your landlord’s insurance
An investor may be able to claim their landlord’s insurance, so Mr Jacobs recommended to double check and see if it can be deducted.
4. Repairs v improvements
Knowing the difference between repairs and improvements may be able to help you save even more. A repair is claimable when it is considered a one-off fix and the entire expense can be claimed, while improvements, classified as “capital expenses”, can only have a small portion of the expense being claimed.
Accountants can help investors differentiate between repairs and improvements
Getting an up to date market appraisal on the property is another key way to ensure that you keep an eye on the overall performance of your investment. It’s going to give you the best picture of your return as well as giving you a platform to set your next financial year goals.
As always, we are available to help and give advice on better ways to manage your property investment. Contact Anthony Gorman at anytime to see how we can best help with your Property Management needs.