7 actions for landlords at tax time

As a landlord, there’s no wrong time for you to start thinking about preparing for the lodgements of your tax returns.

We advise that you start gathering relevant paperwork around May. You should also check the residential rental properties area of the ATO website to see what you can claim for this past fiscal year.

It’s also a good idea to refer back to your last tax return so you don’t miss any claims.

If you have a property manager looking after your property, they will supply clients with their Income & Expenditure report to lodge with their tax return, usually in the first week of July. This report will cover all claimable costs and work the property manager has arranged for you.

Of course, this won’t be the complete picture. There are other expenses associated with a rental property that can be claimed, too. These will likely include professional services, such as legal and accounting advice, plus council rates and depreciation.

A comprehensive tax return can make a significant difference to your returns. It can be the difference between your property producing a negative or positive cash flow for the fiscal year. So, here are seven suggested actions we advise all of our landlords to do:

1. Speak to an accountant

Professional advice is advisable when you’re a property investor. And if you don’t have a depreciation schedule – it’s said 80% of landlords don’t – then get one as soon as you can. You can learn more about depreciation reports from our preferred quantity surveyors here.

2. Contact your property manager

This is a great opportunity to discuss the rental market, property values and any further information you need on understanding your Income & Expenditure report.

3. Consider small improvements now

If you can squeeze in any work requested by your tenant, then you will be able to claim the expense almost immediately if done before June 30.

4. Prepare paperwork

Gather all the receipts related to the running of your rental property. Get them in good order. It’s a great discipline as it provides you with insight into the financial performance of your investment and your accountant will need these. We advise to itemise all of these in a spreadsheet. It will make yours and the accounts job much easier, and faster.

5. Get familiar with the basic rules

Tax regulation changes every year, so it’s never a bad idea to know what you can claim. These include items such as:

- Interest on your loan

- Professional fees – legal, accounting and property management

- Maintenance costs/strata fees

- Depreciation – You can make claims only if you have a depreciation schedule created by a quantity surveyor.

6. Review insurances

This is a good time to check what you’re spending on policies for content, building and landlord insurance. You can claim insurance costs for the last 12 months, and it never hurts to see if there’s a better deal out there and to double-check you’ve got appropriate coverage. You can learn more about landlords insurance  here. This is our preferred insurance provider and they are Australia’s leading landlord insurance specialist.

7. Sell later

If you’re on the brink of selling your property, it’s a good idea to delay the transaction until July. That way, you avoid being charged capital gains tax in this fiscal year and can it settle your tax in the next financial year.

This information is general only and does not constitute professional advice. You should always seek professional advice concerning your particular circumstances before acting.

Want the full report? And an experienced agent to take you through the analysis?

Yes please! >

We are all about making sure our clients get the most out of their investment property. Making sure you are claiming all you can at tax time is just one part of making sure that you have a healthy investment. Every investor's goals differ and so does their financial and life situation. And all of these things can change year to year. That’s why we recommend our investors get an understanding of how well their investment property is meeting their current goals and situation at least every 12 months.

How healthy is your investment property?

1. Take the 4-minute Property Health Check Survey
2. Get your instant property health score
3. We’ll provide investment performance action items.

Take the health check now >

Should I buy or sell first?

You might be surprised to learn that if you understand the process, one approach outweighs the other in terms of flexibility, time, and peace of mind if you meet the criteria.

Find out more about the process >

After more information on any of the topics?

Get in touch with us. We’ll get one of our team to contact you and answer any questions on the key info from the event.

Contact Us >

Does your property manager cover your costs when you are out of pocket? We do!

We’re not like any other property management business in Canberra. Our 4 guarantees cover you (and your costs) when it matters most. 

Want to know more about our guarantees and learn what else we do to maximise your returns? Book a Southside or Northside consultation depending on where you want us to meet you.

We guarantee you won’t regret it.

Quick Action Investor Checklist.

Is your investment property getting the care and attention it deserves? If not, we're here to help. Download our quick action investor checklist today to see if you are getting the most out of your investment property.

Download the checklist >

Get in touch with us

Thank you! Your enquiry has been received!
Oops! Something went wrong while submitting the form.