Page 7 - Advice Matters - Byfields Wealth May 24

Ease your

tax season

stress

It’s the same time every year
but it seems that no matter how
prepared investors are for June
30, when it comes to gathering
up the necessary documentation
to complete tax returns, this
exercise creates more stress
than it should.
This process can be made much easier if
proper methods of record-keeping are put
in place – and the best part is that once
you have your system in place, it should
work every year.
To make tax time easier this year, all you
need are a few manila folders marked
with the following:
• Loan statements: These statements
are important for calculating, and
subsequently deducting, the interest
costs on your investment loan.
• Invoices and receipts for repairs,
replacements and capital works: These
costs may be claimed on your tax
return.
• Rates notices: These notices detail
the applicable rates charges on your
property, and should be retained
alongside your other records to be
claimed as a tax-deductible expense.
• Real estate statements: These
statements detail necessary
information about your rental property
income, the real estate agent’s
management costs, and perhaps even
repairs undertaken on the property.
• Insurance policies: Keep these on
hand at tax time as any premiums
for building replacement, contents, or
landlord insurance can be claimed as
tax-deductible expenses.
• Depreciation schedule: Depreciation
is a valuable means of generating
tax deductions. Keep a depreciation and store the information electronically must be retained for at least five years in
schedule and include any depreciation to minimise the piles of paperwork. Some order to comply with the requirements of
on buildings or fittings in your tax mobile phone apps allow you to take the Australian Taxation Office.
return to help reduce your assessable a photo of a document and save it in Take the extra time to set up your system
income. various document formats. However, it is this year and when the next June 30 rolls
It also makes sense to keep this important to retain the hard copies. around you will be so glad you did.
information together in a secure location. Be aware that any records relating to
A good idea is to scan documentation deductions claimed for property expenses

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