It’s that time again, end of financial year! As a property investor, there are a few things you need to be mindful of at EOFY to keep yourself organised and ensure this time of year goes smoothly. Here are the things you need to do to make EOFY productive and organised.
Keep your documents organised.
Owning investment properties involves a lot of paperwork. Between lease agreements, bills, and loan statements, it can be easy for things to get lost. Make sure you have a system in place for organising all of the documents associated with your investment properties.
Keeping these documents organised throughout the financial year will also make the process of finding documents for your accountant at EOFY quick and easy.
Ensure you’re maximising your tax refund.
There are some things you can do at EOFY to maximise your tax refund.
Some of these things include:
- Understanding all the possible tax deductions for your investment properties.
- Think about moving forward any small repairs or works to your properties to June to maximise your tax refund.
- Review and identify other tax deductions that can be made in other areas such as your business or employment.
Delay big purchases.
Big purchases such as appliances or equipment depreciate over time. This means if you make a big purchase on something like an oven, fridge, or hot water system in June, you’ll only be able to claim one month of depreciation in the current financial year. Instead, try delaying your big purchases until early in the next financial year.
Review your loans.
Interest payments on your loans are likely your most significant cost associated with owning investment properties. EOFY is a good time to speak with your bank or mortgage broker to ensure you’re getting the best possible interest rate.
As always, make sure you talk to your accountant or qualified finance professional, so you understand all of your financial obligations at the EOFY.
Understanding what’s needed to make your EOFY go smoothly will help you avoid any headaches when you’re organising your tax return.