Tax-time isn’t something to fear if you have your affairs in order. At the end of it you get something even better: a tax refund! The ease of filing your your tax return depends on you and how you handle your affairs. The amount you get back depends on what you know you can claim. We have some advice to help you handle both.
Deppro handles property depreciation reports, not tax, but we know a thing or two about the latter. ‘Tax depreciation’ is the same thing as property depreciation. It’s part of your annual taxable income.
The cost of a depreciation schedule is actually fully deductible, along with whatever depreciation amount you can claim that year. That’s more money going back into your bank account!
Investment property is a source of income, and you must list it on your tax return. Depreciation is the ‘extra’ essential that can push you further to your goal. Imagine paying off your loan or now having the potential to buy another property. Depreciation earns investors tens of thousands of dollars over the time they hold the assets in their portfolio. That’s just for one property. Imagine being in the 1% club and having six or more.
To get your best-ever tax return, you need your accountant on your side. You would’ve handed over your tax depreciation report to them, anyway. It’s their job to file a return that gets you the best amount back possible.
Before you meet with them, it’s possible to estimate how much you’ll get back. The ATO releases a new edition of their tax return estimator every year, and it’s free to use. You need:
- Your PAYG statement (for gross income and tax withheld)
- A list of your tax offsets and what you can claim
- Calculation of your Medicare levy
- To know your residency
If your numbers are accurate and you have the correct information, what you get from your accountant won’t be much different. If at all.
To get your best-ever tax return, you must be organised. When the end of financial year comes, you need these tools in order to claim:
- Your accountant
- PAYG statement
- Depreciation report
- List of tax offsets
Not all tools are free, but they pay for themselves in the end thanks to that amazing tax refund!