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Property Finance, Property Investment Finance, Self Managed Super Funds (SMSF)

Property Investors – Make Sure You’re Ready for Tax Time

It’s hard to believe but it’s almost the end of another financial year. For property investors this means getting together all the information their accountant requires.

To save you time, and ensure you get all the deductions you deserve, we have put together a list of what you need:

  1. Rates – water and council rates, charged once the property is ready to rent.
  2. Strata fees –  a copy of strata fees if applicable
  3. Interest – make sure you only claim interest on funds that relate to your investment property, not your owner-occupied property. If your finance was set up correctly this should be easy to determine. Take copies of your loan statements.
  4. Insurance – landlord, building, contents and public liability
  5. Property management fees – either fees or commissions paid to property agents.
  6. Depreciation – based on either a depreciation report (quantity surveyors report) or from individual assets purchased for the property (new oven, flooring, blinds etc.). **
  7. Capital works – anything that increases the value of your investment property.
  8. Ongoing expenses – knowing if work done to your property is maintenance, a repair or an improvement.

** In the latest budget the government put restrictions on claiming depreciation for items in the unit (e.g air conditioner). However, these do not apply to investors who already owned the property prior to the 9th May 2017 or to investors who bought new appliances for a property.

If you only purchased your investment property in the last financial year you need to also provide:

  1. Purchase settlement statement
  2. The loan offer document or loan disbursement schedule listing the fees you were charged to set up your loans (including stamp duty etc)
  3. A copy of the depreciation schedule – remember the cost of preparing a depreciation schedule is also deductible (if you do not have a depreciation schedule ask your accountant who they recommend).

Instead of waiting until the end of the financial year, try to set aside the documents you’ll need from day one so that when tax time comes, you’ll be prepared.

Contact Us if you would like further information or would like to discuss your investment property options.

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