End of Year Investment Taxation Expenses
The end of the financial year is here and a visit to your Accountant is the next step for a property investor.
As a property investor do not underestimate the benefit of your tax deductions. It is the money that is tax deductible that can make a difference to your move forward with property investing. When you are a property investor you need to consider your tax very carefully. I strongly suggest that you ensure that your accountant is an experienced accountant in property investing and that they know the ins and outs of expenses that can be related to investment properties.
If you have more than one property, take care to keep all the information for each property in a separate file.
Basic information you should have for each property is:
• Address of the property
• Purchase price and date of purchase of the property and a copy of the Purchase Contract
* A copy of any lease agreements for the year
• A copy of your depreciation schedule professionally prepared by your qualified Quantity Surveyor
• The total income from the property for the year. If it has not been fully let for the year have the dates that it was rented for
• The total expenses for running the property and relevant receipts
• A copy of your bank statements
• A diary of any travel expenses related to ownership and management of the property, with supporting receipts, this includes any expenses relating to purchasing the property if it has been purchased in this financial year.
Keep in mind that accounts fees are not cheap so unless you want an outrageous bill have all your income and expenses documented. This is easy to do in an Exel spreadsheet if you only have one or two properties.
Take with you a list of any questions you have for your accountant.
Try to get your accounts done early because if you want to reinvest, the bank will want to see your financials for the end of the year before they will give you an answer.
Filed Under: Tax Tips
About the Author: 
