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A checklist of must-do’s before tax time By David Naylor

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As a property investor, you should remember that your tax return could give you some extra funds that you could use to pay down your mortgage or invest in another property. Here is a list of things that could make pre-tax time easier for you.

You should get your paperwork in order early on.

Organise your records and receipts and sort the expenses into different categories like strata levies, rates, property management, water charges, repairs and maintenance.

If the ink on a receipt has faded, you can use a bank statement as proof of purchase. You may also want to create a spreadsheet so you can track your expenses throughout the year.

It is also important to seek expert advice from a tax professional about your property investment and tax return so you can do it correctly.

They know which taxes you have to and don’t have to pay and can save you time and money. They also know what deductions you can qualify for and tally up all your allowable deductions, including those you can claim only part of the expenses, those that can be claimed in the same year or those that can be claimed over several years.

Immediate deductions include expenses for owning, maintaining and managing your property such as property management fees, insurance, interest on loans, advertising for tenants, legal expenses, land tax, repairs, maintenance, pest control and so on.

You can attend to any maintenance or repairs now so you can claim the expenses as tax deductions on your 2016/2017 tax return.

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You should also have a professional prepare a depreciation schedule for expenses deductible over several years, including borrowing expenses, amounts for decline in value of depreciating assets, and capital works deductions.

The full amount of rent you earn must be indicated in your tax return. This is the total amount of rent and the associated payments you receive. You should review how your property is performing and determine whether or not your loan is serving you.


Always remember that it pays to plan ahead so arranging your finances accordingly may even help you expand your investment portfolio. For more information about properties and taxes in Australia, contact a Specialist to discuss your particular circumstances.

For more tips regarding tax time and other tax advice from our industry experts, visit


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