Here are some tips to help you prepare for EOFY

As a property owner you should look to make the most of your investments as the end of the financial year approaches. With careful planning and preparation, you can maximise your deductions and minimise your tax liabilities.

To ensure you get the most out of your tax planning, it’s best to start early and start immediately. Taking a proactive approach can avoid common errors and omissions that the Australian Taxation Office (ATO) has identified in previous years.

The ATO’s Random Enquiry Program found that nine in 10 sampled tax returns required adjustments last year, which is why it’s important to take the time to review your records and seek professional advice carefully. The ATO’s findings highlight the importance of accurate reporting, especially regarding rental income and capital gains on property sales.

Some common errors landlords make include failing to declare rental income, claiming the main residence exemption for a rental property, and incorrectly deducting travel expenses. By avoiding these mistakes, you can ensure that you fully comply with tax regulations and take advantage of all the benefits available to you as a property owner.

Here are some tips to help you prepare for EOFY:

1. Keep accurate records – One of the most important things you can do is keep accurate records of all your income and expenses. This includes rental income, repairs and maintenance, property management fees, and any other costs associated with owning and renting out your property. Make sure you keep all your receipts and invoices in a safe and organised manner.
2. Understand your deductions – As a landlord, you may be eligible for a range of deductions to help reduce your tax bill. These can include expenses such as repairs and maintenance, property management fees, insurance, and depreciation. It’s important to understand what you can claim and ensure you have the necessary documentation to support your claims.
3. Seek professional advice – If you need clarification on any aspect of your tax obligations, it’s always a good idea to seek professional advice from a qualified accountant or tax agent. They can help you navigate the complex rules and regulations and ensure you maximise your deductions and minimise your tax liabilities.
4. Plan ahead – Don’t wait until the last minute to start thinking about your tax obligations. Instead, start planning early and make sure you have all the necessary documentation and records. This will help you avoid any last-minute stress and ensure you’re fully prepared for the EOFY.

In summary, preparing for EOFY doesn’t have to be a daunting task. With the proper preparation and planning, you can ensure that you’re maximising your deductions and minimising your tax liabilities. Remember to keep accurate records, understand your deductions, seek professional advice and plan ahead.

By following these simple tips, you can easily navigate the complex world of tax obligations and ensure that you’re fully prepared for tax time.

If you would like to know more, get in touch.