Investment Property Claims For This EOFY

27 June 2020

With everything going on in the world right now, it’s easy to forget the end of the financial year is now upon us.

As a landlord, this is the time for you to gather your receipts, expenses such as the interest paid on the loan against your property, and to calculate your income. This way, you’re prepared for your accountant or in good shape to lodge the tax return yourself.

As experienced property managers, we know the key to a smooth tax return process is organisation. We assist with this by providing clients with an Income & Expenditure report for the fiscal year.

This report helps in reducing your workload and assists in making your tax return as stress-free as possible. It also improves the accuracy of your tax return so you don’t forget to claim everything to which you’re entitled and often results in a faster refund.

It’s always a good idea to get your financial records straight yourself, if possible and practical. It gives you insight into your income and expenses across the year.

And besides, no one wants to pay an accountant to fossick through a shoebox to get your receipts and bank records in order.

A common problem is missing receipts. It’s annoying when they go walkabout and you can spend hours trying to find them. But, if you have a bank record of the expense, the tax office will usually accept the claim.

We always recommend that our landlords use a Registered Tax Agent to lodge their tax return, as tax office rules can regularly change. With professional advice, you’ll be able to maximise your return and avoid an audit.

You’re welcome to discuss any issues or concerns with us.

To help you along, we’ve listed the core claims you can make for your rental property. It’s always good to keep these in the back of your mind as you make your preparations.

    1. Interest on your loan – This does not include your overall repayments to reduce the principal – just the interest component. Do not claim the interest on any property where you are the owner/occupier.
    2. Insurance –You’ll likely have multiple policies, such as landlord insurance, public liability, building and contents if you’re renting out a fully-furnished property.
    3. Maintenance – Every property has wear and tear. If you’ve asked us to carry out maintenance for your property, we’ll have a full record of the costs. And it will be included in our Income and Expenditure report.
    4. Improvements – Otherwise known as capital works, you can claim any improvement that you’ve made to enhance the property. If you have done this, make sure your depreciation schedule has been updated. (see below)
    5. Depreciation – You should have a depreciation schedule that will allow you to make claims on the falling value of items such as a cooker, oven, carpets and curtains. Your accountant will likely have organised this when you first rented out the property. Only a quantity surveyor is permitted to establish these schedules.
    6. Management fees – All of your property management fees are also claimable.

Feel free to contact us for any advice and further assistance that you might need. Good luck with your tax return!


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