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 schedule and include any depreciation on buildings or fittings in your tax return to help reduce your assessable income.