How a property manager can help you at tax time

Tax – it’s one of the more mundane responsibilities of being a landlord. Nonetheless, it’s an important one and doing it correctly each year can save you money and stress.

Fortunately, it’s easy when have a qualified property manager, who can keep track of your rental-related income and expenses that are tax-deductible. Let’s explore how a property manager can help you when June 30 comes around.

Keeping records

If you rent out a property, you need to declare all your rental-related income in your tax return. This requires keeping detailed records to ensure you’re complying with Australian Taxation Office (ATO) requirements.

We understand that this is difficult for time-pressed landlords who might not enjoy laborious administration. Property managers now have the capacity to provide an annual report that groups income into the same categories that the ATO uses.

Handling your bills

There are inevitable expenses when you have an investment property. However, what you might not know is a lot of them can be claimed at tax time. They range from council and strata fees, through to insurance and repairs. Some of these may be overlooked by self-managed landlords, which means they can be left out of pocket from under-claiming.

These bills all need to be inventoried before you visit your accountant so you can claim deductions correctly. As a part of a good reporting service, property managers can handle this for you and highlight the bills that are tax-deduction bills in your end of year report. This ensures you’re not only maximises your deductions, but also reducing the risk of claiming incorrectly and getting into the bad books with the ATO. The last thing you want is to be penalised by the Australia Taxation Office (ATO) because of mistake in your bookkeeping or an incorrect claim.

Property managers are tax deductable

Believe it or not, but not only can property managers help you with your tax reporting, but they are can also be a tax-deductible expense. This is just further reason why having a property manager organise your tax information is a great idea.

If you want to make tax time a much easier process, let us help you. We have a lot of experience in this area, providing reports to hundreds of our landlords each year with the information they need to make tax time a breeze.

Get in touch.