Our response to limit the spread of COVID-19 | Read here
Untitled-1

End of year tax tips for property investors


With the end of the financial year only a couple of weeks away, you might be turning your attention to what you should be doing to either reduce or manage your tax better.  The good news is that there are still a few things you can do between now and 30 June that might help, and even a few more things you can do before your lodge your return.

Prepay expenses

If you prepay any expenses due on your property before June 30, you can claim the cost this financial year. Don’t go out and spend money that you don’t need to spend, however if you were going to do it anyway you might as well get the deduction early. Don’t forget that immediate deductions only relate to repairs and maintenance. Capital improvements cannot be claimed as an immediate write-off and can only be depreciated.

Get a depreciation report

A depreciation report is something that most property investors should get because it’s highly likely that you have some depreciable items in your property that you can claim against your tax. It could be the toilet and taps that were replaced six years ago. It could be some of your outdoor landscaping, lighting, painting or carpets.  You don’t need to get the report before 30 June, but you should do so before you complete your tax return.

Be aware of your capital gains tax

If you’ve sold a property this year and had a capital gain, be mindful of your tax liability. Cross check this against your total balance sheet and make sure that you don’t have any liquid assets that you want to sell that could be sitting at a loss. It can be a good time to move along that under performing asset and pay less tax on your property profit at the same time.

Organise your receipts and documentation

Now is the time to ensure your documentation is in order prior to seeing the accountant for your tax returns. Don’t leave it to the last minute because you could end up forgetting about an expense or two and won’t end up claiming them as a deduction in this financial year. If you remember something after your return is in, the only way to get your deduction is to put in a revised return which costs time and money.

Prepare for next year, now

The most effective tax plans are done well in advance, typically before an asset is even purchased.  Take this opportunity to talk to your tax adviser about what you could be doing over the next 12 months to ensure that you’re getting more back from the ATO.


You may also like

How to live off a single income

Whether you’re going on maternity leave, looking after elderly parents or pursuing your own business, a little bit of planning before dropping to a single income will go a long way. Here are some ideas to help make the transition smoother.

Read more

How to invest in property if you can’t afford a house

Owning a home is the great Australian dream. But what can you do if you can’t afford a house? Find out your investment options.

Read more
Talk to us

Guaranteed
value

We’re so confident about creating value for you quickly, that we guarantee it with a 100% money-back guarantee.


Call us for a free strategy session

Arrange a call back

  • This field is for validation purposes and should be left unchanged.
Untitled-2 Untitled-2

Arrange a call back

  • This field is for validation purposes and should be left unchanged.

Our response to limit the spread of COVID-19

  • As COVID-19 continues to spread, we would like to take a moment to let you know what Financial Spectrum is doing to respond.

    While we haven’t been directly affected with any confirmed cases, we are taking all reasonable precautions to remain safe.Our priorities are:

    1. Keep our staff and clients safe
    2. Stay fully operational in our service delivery and continuing to manage your financial affairs
    3. Play our part in minimising the impact on our community against the spread of COVID-19

    Financial Spectrum has the technology, infrastructure and systems to continue business as usual remotely and our staff will now be working from home.

  • You should notice no change to our service, with the exception that we are encouraging our clients to meet via video call, rather than face to face, unless requested. We will be contacting all clients with meetings booked over the next two weeks with instructions for a video call.This is an evolving situation and we will continue to monitor developments. We will keep you informed of any material changes to our approach.

    These are unprecedented times and we understand that many of you will be feeling unsettled about your finances. We would like to assure you that we are open for business and are here to help you. If you don’t have a meeting booked but would like one, or if you have questions, please contact us at info@financialspectrum.com.au or on
    02 8238 0888

Brenton Tong

Managing Director

Google Review

Google Rating
5.0

Register

Looking for something?