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C&G’s Guide to Preparing for Tax Time
Before we know it, another year has passed. Another financial year, that is! As June 30 draws near, it is crucial to be across balance sheets for your investments and property assets, ensuring they reward you with relevant tax return benefits. In this C&G blog, we highlight the important details you should consider as you prepare for tax time.
What can you claim?
A good first step would be understanding what you are able to claim. When it comes to your investment property, everything from insurance to maintenance is fair game. You should also consider the interest component of your mortgage, council and water rates, land tax and renovation costs. If you own an apartment, you can also consider body corporate fees and property management fees if you lease your asset. The repair and maintenance costs accumulated during tenancies may also be claimed.
Brush up on your tax depreciation knowledge.
If you’ve owned your asset for some time, you may be able to claim capital works allowance and plant and equipment assets. C&G have a detailed blog assisting landlords to claim tax depreciation against the wear and tear on their assets. It also outlines the importance of a tax depreciation schedule and how you can claim your deductions.
What’s different this year?
This financial year’s compliance may be different due to the impact of COVID-19. If you have found yourself working from home more often, you should consider your home office expenses. The Australian Taxation Office (ATO) have outlined how you can calculate this return, and what documents you will need to produce.
Additionally, landlords who have granted their tenants rent reductions or deferrals through the Government’s rent assistance program may be entitled to a tax relief. This information is regularly changing and is a matter for discussion with your accountant.
Engage an expert.
It is possible to lodge a tax return yourself. However, depending on the complexity of your assets, things can ‘slip between the gaps’ and you may not have all the knowledge necessary to optimise your tax refund. We recommend engaging an expert accountant, even if it’s for a simple consultation or to ensure you meet certain eligibility requirements. Chisholm and Gamon have a strong network of professional connections, from quantity surveyors to accountants. We are excited to answer your queries, and can refer you onto a specialist if you need further assistance. Reach out to us today!