EOFY Checklist for Property Investors: Conquer Tax Time Like a Pro

EOFY has now come and gone, but with it came the opportunity to fine-tune your finances and potentially boost your returns. Here’s your ultimate guide to a smooth EOFY experience:

Ditch the shoebox of receipts! Gather your financial records and prepare a clear summary of expenses. The ATO accepts bank statements to substantiate claims if a receipt goes missing. This proactive approach saves you and your accountant time and reduces your bill.

Understanding what qualifies as a tax deduction for your investment property is crucial. Claiming everything you’re entitled to keeps you ATO-compliant and increases your tax refund, putting more money in your pocket.

Common Deductible Expenses:

• Rates: Water and council rates applicable once the property is ready for rent.
• Interest: Claim interest only on funds specifically related to your investment property, not your primary residence.
• Insurance: Landlord, building, contents, and public liability insurance.
• Depreciation: Based on either a depreciation report or individual asset purchases for the property (ovens, flooring, blinds etc.).
• Capital works: Improvements that increase the value of your investment property.
• Ongoing expenses: Understand the difference between maintenance, repairs and improvements.

Consider having your property manager pay expenses on your behalf. This frees up your time and streamlines record-keeping. At EOFY, they provide a detailed breakdown of all income and expenditure for your rental property. This is a game-changer for investors with multiple properties, eliminating confusion about expense allocation.

While this guide empowers you, consulting a qualified tax professional is always recommended to ensure you’re claiming everything you’re entitled to. Get in touch with the team at: https://www.turnerrealestate.com.au/contact/