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How to get ready for tax time - June 2024

Preparing for Tax Time: June 2024

As the financial year draws to a close, it's crucial to prepare for your tax return. By taking proactive steps now, you can ensure a smooth and efficient tax filing process, making it easier for both you and your accountant. Organising early can help reduce administrative hassles and expedite your tax return, especially if you're expecting a refund. Here are some key steps to get ready for tax time:

Maintain a Dedicated Tax Folder

Whether you prefer electronic or physical storage, it's essential to have a dedicated place for all documents and information needed for your tax return. This includes bank statements, receipts, rental ledgers, and any other relevant documents. A convenient way to organise receipts is to take photos or download electronic versions and save them in a folder on your computer. When tax time arrives, you simply open this folder or send the files to your accountant.

Review Your Income for the Financial Year

If you've had multiple lease agreements or short-term rentals throughout the year, ensure you have comprehensive records of all rental income. Use bank statements, spreadsheets, or accounting software to accurately track and document your earnings from investment properties.

Pre-Pay Interest to Reduce Your Marginal Tax Rate

If your income is likely to fall into a higher tax bracket and you have a fixed-rate loan, consider pre-paying your interest for the next 12 months. This can be claimed as a deduction in the current financial year, reducing your taxable income.

Complete Repairs and Maintenance Before EOFY

For any necessary repairs or maintenance on your investment properties, consider completing them just before the end of the financial year. This allows you to claim a deduction on your tax return, reducing the time between your expenditure and receiving your refund.

Don’t Overlook Depreciation

Depreciation is often forgotten by property investors at tax time, but it can significantly boost your tax return. To maximize your returns and minimize expenses, ensure you have a depreciation schedule drawn up. This helps you get the most out of each tax time by claiming all allowable depreciation.

Preparing for tax season can be overwhelming due to the numerous details involved. If you're uncertain about which deductions are allowable, consult your accountant for clarification. Professional guidance ensures compliance with ATO regulations and helps you maximize your refund.




Remember, this article is general in nature and does not constitute financial or legal advice. Always consult your professional financial and legal advisors before making any decisions.