Sorting through bundles of receipts to work out your allowable deductions isn’t anyone’s idea of a good time, right?
Property investment can be a rewarding venture, but it comes with its share of responsibilities, especially when tax season comes around. To help you navigate the world of tax deductions, we’ve put together a tax checklist for property investors.
Follow these steps for a less stressful tax season:
1) Organise your documents early
Start by organising your documents now rather than later to make tax season less of a headache.
Assemble all necessary paperwork, such as rental income statements, property management reports, and insurance information.
Consider digitising your receipts using various apps and tools to streamline the process.
Keep in mind the ATO still recommends you keep a backup of all your digital records.
2) Familiarise yourself with your allowable deductions
As a property investor, you’re entitled to various deductions. These can include advertising for tenants, council rates, water bills, maintenance costs, and depreciation on assets.
Check out the ATO’s Guide for rental property owners, Rental Properties 2022, for more insight into tax deductions for property investors.
3) Establish your assessable income
Assessable income comes from a range of 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) Lock in a date with your accountant
Accountants are like rockstars at tax time, so book in early to avoid disappointment. While you might think about doing your taxes yourself, enlisting the help of a tax accountant can save time and money, as they should know exactly which deductions you qualify for.
5) Plan for the future
You’re already diving into your finances, so why not take advantage to review your financial goals and plan 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, your 1st Street Mortgage Broker is here to help you reach them.
Contact us today.
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