The end of the financial year is almost here, which means it’s tax time. While it can be tempting to put off getting organised until after 30 June, taking some time now to get organised will help you get your tax return sorted as soon as you can. This is an excellent time to review your properties and all the associated administration to make sure you’re set up in the most efficient way possible. Here are five things you need to do to get ready for the end of the financial year.
Organise your paperwork
Hopefully, this is something you attend to throughout the financial year. You’ll need to get all of your documents ready, so your tax return goes smoothly. These documents include bank statements, invoices, receipts, insurance documents, a statement from your property manager, rates notices and your tax depreciation schedule.
Understand what you can claim
Your accountant likely knows everything you can claim in relation to your investment property, but it’s good to run through a list of all your spending associating with the property to ensure you don’t leave anything out. This is where your paperwork comes in handy to crosscheck your spending with your tax deduction amount when you do your tax return.
Consider paying some bills early
For bills due at the start of the new financial year, you could consider paying these bills early so they can be included in this year’s tax return. Check which bills you have due in July, and pre-pay them before 30 June.
Check for repairs
Check your properties now to see if any small repairs are needed. If you make these repairs before 30 June, you can claim them as an expense in this financial year. Just make sure the repairs are small and repairs only. If you make drastic changes or improvements to your property, that will be classified as a capital improvement, and it will need to be depreciated over several years.
Review your loans
Check your loans and see if you’re getting the best rate possible. If you’ve had your mortgage for a few years, you may be in a position to refinance for a better rate.
Tax time doesn’t have to be a headache if you get organised early. If you’re planning on making any purchases or changes to your properties for tax purposes before the end of the financial year, make sure you speak to your accountant first to ensure you’re making the right decisions for your situation.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.