The end of the tax year is almost here, meaning that it’s tax time. Although it might be easy to delay organising until after 30 June, you should take some time to get organised to help you arrange your tax return as soon as possible. It is a perfect time to review your assets and all the related admin and ensure that you are set up in the most effective manner. Below are five things that you need to do to get prepared for the financial year to conclude.
Organise all documents
Fingers crossed, you will be attending to this during the whole financial year. All of your records will need to be ready so your tax return goes smoothly. These records include bank accounts, invoices , receipts, insurance forms, your property manager’s statements, rate updates and your tax depreciation plan.
Comprehend what you can claim
Your accountant already knows what you can claim about your investment property, but it’s useful to run through a list of all your property-related expenses and make sure you don’t leave anything out. This is where your paperwork comes in handy when you file your tax return, to compare your expenses with your tax deduction limit.
Start paying out those bills early
For bills due at the beginning of the new financial year, you might consider paying those bills early so they can be included in the tax return of this year. Check which bills you owe in July, and pre-pay before June 30.
Do repairs now
Check your property now, to see if you need any minor repairs. When you make these repairs before June 30 you will report them in this financial year as an expense. Only make sure that the repairs are small, and only repairs. If you make major changes or upgrades to your house, this will be known as a capital investment and for several years it will have to be depreciated.
Update your loans
Check your loans, and see if you get the best available rate. If you have had your mortgage for a couple of years, you might be able to refinance to a better rate.
When you get ready early, tax time needn’t be a headache. If you intend to make any transactions or improvements to your assets for tax purposes before the end of the financial year, make sure that you first consult with your accountant to ensure that you make the correct decisions for your circumstance.
Note this article is not a financial or legal advice. Please check with your financial and legal qualified advisors before taking any decisions on your own.