Tax time can be stressful for everyone. Deadlines, expenses, boxes of receipts and a sense of gnawing uncertainty cast over each deduction you hope to make. Imposing and unknowable, landlords often view the tax office as a scary beast – but really, it’s not so bad. With the right support, resources and understanding, tax time can be a breeze. Yes, even for landlords! Think Property & Co’s essential end of financial year tips will mean you sail through tax time with ease in ‘FY2016-17’.
- For goodness sake, get a depreciation schedule!
Many landlords avoid learning about depreciation and their investment property. It’s a big word – and to be honest, we understand why you might feel like having a depreciation schedule created is a whole lot of hassle with little reward. Oh how wrong you – and 80% of investors – are. You could be missing out on thousands of dollars in tax deductions, even if your property isn’t new. Speak to your Think Property & Co property manager about arranging a depreciation schedule before the tax year is out. Who knows? You might even save enough for a pony.
- Invest in your investment. Really.
Acquiring your investment property isn’t where the spending ends. Landlords, it’s time to invest in your asset to ensure it provides good returns in the long run. An experienced property manager will be able to identify aspects of your property ripe for improvement, offering your asset wider tenant appeal and the potential to yield higher rental returns. These improvements might be adding air conditioning, newer appliances, painting or upgrading fixtures. Coinciding these investment property upgrades with tax time can add to your potential deductions for the tax year – kaching!
- Get a Property-Savvy Accountant
Not all accountants were created equal. Property investment is a niche accounting category, and in order for you as landlord to enjoy all the benefits investment offers, you need an accountant who will treat your asset as a business! It’s in your interest to work with an accountant well-versed in the opportunities and risks that concern a property investor’s return. From both a compliance and financial perspective, a clued-up property expert accountant will help you get the most out of your investment property.
- Have Think Property & Co. Manage Your Investment
The golden rule of property investment – never attempt to self-manage your assets. Handing over management of your property to Melbourne’s ‘realest’ real estate team will leave you safe in the knowledge that everything is taken care of. We’ll source the perfect tenants, keep on top of your rental income and maximise of your investment’s potential. As a Think Property & Co landlord, you’ll also receive a comprehensive EOFY report via email in the first week of July, providing you with all the details your accountant will require.