Rental Property Tax Returns – Be Prepared:

What you need to bring to your tax return appointment.

If your’re coming in soon to discuss completing your rental property tax returns, please see the following to help ensure we can get the most effective result for you.

What to consider?

Here is a brief checklist of issues to consider prior to us preparing for your rental property tax returns.

Income

• Rental Property Annual Management Summary Report from your real estate agent.

• if you self manage your rental properties, a summary of annual rent received for each property.
• Any unusual income received, such as insurance payout for damages, or a reimbursement from tenants for water, etc.
• Any money added to help fund negative cashflow is not considered income, but rather an indication the property is negatively geared.
• Rental Properties in Foreign Countries, will have different financial years, so income needs to be aligned with the Australian Financial Year.
• Capital Gains – example sale of a rental property – we’ll need details of the purchase and sale contract, and any depreciation claims for claw backs. Also was the rental property previous your principal home will effect any Capital Gains Calculations.
• Subdividing the backyard can have Capital Gains issues to consider also.

Expenses

Rental Property Tax Deductions are many and varied, however to keep it simple, thingk of out goings as either…..

Deductible – Straight Away

• See complete list of immediately deductible rental property expenses

Deductible – Number of Years

•  See Complete list of expenses claimable over a number of years

Non Deductible – Capital in Nature

• Again see complete list of capital expense for rental properties

Property Related issues to consider prior to doing your tax returns

PROPERTY RELATED BLOGS

• Demolishing an old rental property – What are the CGT Implications? 
• Capital Gains Tax (CGT) on renting out your principal home?
• Renovations of a Pre 1985 Rental Property – Can CGT be applicable – Yes!
• Property GST – Margin Scheme – Tug of War between sellers & buyers
• Depreciation – Positive or Negative Geared Rental Property?
• Main Residence – 4 Year Rule Exemption of Construction for CGT!
• Do I have to pay tax if I sell the backyard off?

Property Related Tools to help collate information

Use our rental property expense collation forms to help – Rental Schedule Rental Schedule – Excel Spreadsheet Depreciation Checklist for new or existing homes pre 2017 federal budget changes to second houses Investment Property Tax Planning Free Booklet

Guide for Rental Property Owners  & Typical Depreciation Rates for Fixtures & Fittings

New Client or Client Update Form

Self book online a time, date and place to have your tax return prepared.

Be Prepared:

What you need to bring to your tax return appointment.

See 2017 Job Specific Tax Deduction Guides

If your’re coming in soon to discuss your tax return for yourself or your business, try not to turn up empty handed.

 

What to bring?

Here is a brief general checklist of things to prepare for your tax return appointment. Not all of the following will be relevant for everyone.

Income

• PAYG summaries from employers
• Bank interest received during the financial year
• Distributions from trusts, partnerships, managed funds
• Allowances (car, travel, meals, etc)
• Foreign Income
• Dividends
• Capital Gains – example sale of shares or a rental property

Expenses

• Motor vehicle expenses based on business use – (including a log book if applicable)
• Travel and accommodation expenses – local and overseas
• Work uniforms and clothing expenses
• Courses, training and any professional development completed
• Home office expenses
• Mobile Phone & Internet usage (see tips to claim business use %)
• Tools and equipment
• Computer expenses
• Income Protection expenses
• See  newsletter for complete list.

See also our 2017 Individual Tax Return Checklist

MV Log Book Method Worksheet Claim

Rental Property Income & Expenses Statement

New Client or Client Update Form