Preparing for Tax Time
By Sarah Barton, Terri Scheer Distribution Channel Manager
With the end of financial year fast approaching, landlords who carefully plan and manage their expenses can look to achieve the best outcomes at tax time.
Property managers can play an important role in assisting their landlords reduce June 30 stress and maximise their deductions.
Below are just some of the ways property managers can support their landlords through this time.
Tax deductions
Landlords may be able to claim a number of tax deductions on their investment property but this can often be overlooked. Property managers can be an invaluable asset to a landlord and can assist in this area.
Landlords can usually claim their landlord insurance premium as a tax deduction. Body corporate costs and advertising for a tenant are other potential deductable expenses to consider.
Property managers should work closely with their landlords to ensure any maintenance work is addressed prior to June 30 to include in this year’s tax return.
Encourage your landlords to plan ahead and avoid leaving maintenance issues to the last minute, as they may miss out if a tradesperson can’t be booked.
End-of-year financial statements
Property managers can help streamline the process at tax time by providing a detailed end-of-financial year statement to landlords.
This includes specific details they can pass on to their accountant outlining all of their costs, including property management fees, maintenance work and insurance.
Professional advice
While property managers have a role to play with assisting landlords during tax time, seeking advice from a tax specialist can help make this time of year much easier for landlords.
Landlords are encouraged to speak with their accountants to confirm what they can and can’t claim as a tax-deductible expense in order to maximise their tax returns.
For further information call 1800 804 016