9 May 2024 | News

Streamline your tax season preparation

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Despite its predictability, the lead-up to June 30 always tends to spring up surprises, making the collection of necessary documentation for tax filing a daunting task for property investors. However, with an efficient record-keeping system, this annual ritual can become significantly less stressful.

Setting up a simple system with several marked manila folders can transform your tax time experience this year. Here’s what you should organise:

  • Loan statements: Essential for calculating and claiming interest costs from your investment loans.
  • Invoices and receipts: Keep all receipts related to repairs, replacements, and capital works, as these are deductible expenses.
  • Rates notices: Retain these notices as they outline the rates levied on your property and are necessary for tax deductions.
  • Real estate statements: These provide details about your rental income, management fees paid to real estate agents, and any property repairs, which are crucial for your tax records.
  • Insurance policies: Ensure you have access to your building, contents, or landlord insurance policies during tax time, as their premiums are tax-deductible.
  • Depreciation schedule: This is a key element in reducing your taxable income through deductions on building or fittings depreciation.

To enhance organisation and minimise physical clutter, consider scanning these documents and storing them electronically. Utilising apps that convert photos of documents into various formats can be particularly handy, though keeping hard copies is still necessary.

Remember, you must keep any documentation related to claimed property expenses for a minimum of five years to meet Australian Taxation Office requirements.

Invest time now to establish your record-keeping system; come next June 30, you’ll be reaping the benefits of this foresight.

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial adviser to consider whether that is appropriate having regard to your own objectives, financial situation and needs.

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