Being a landlord can be a lot of work. Between finding tenants, managing repairs, and dealing with rent, it’s easy to feel overwhelmed. And when it comes to tax time, things can get even more complicated. That’s why we’re here to help!
End of Financial Year (EOFY) can be a real headache for landlords. There are so many things to keep track of, from rental income and expenses to depreciation and capital gains. It’s easy to miss something important and end up paying more tax than you need to.
So, what can you do to make things easier?
- Get organised: The first step is to gather all your paperwork. This includes rental income, bank statements, receipts for repairs and maintenance, and any other expenses related to your rental property.
- Understand your deductions: Not all expenses are tax-deductible. It’s important to know what you can claim and what you can’t. Things like repairs, property management fees, and advertising costs are usually deductible, but personal expenses like furniture or renovations aren’t.
- Consider depreciation: Depreciation is a way to claim a tax deduction for the decline in value of your property over time. It can be a complex area, so it’s worth talking to a tax professional.
- Don’t forget about capital gains: If you sell your rental property, you may have to pay capital gains tax. This is the tax on the profit you make from selling the property.
- Get professional help: If you’re feeling overwhelmed, consider hiring a bookkeeper or accountant to help you with your EOFY. They can save you time and money by making sure you claim everything you’re entitled to.
Remember, EOFY doesn’t have to be stressful. By getting organised and seeking professional help if needed, you can make the process much smoother.
Need help with your rental property bookkeeping? We’re here to help! Contact us today for a free consultation.
