What to Gather Before June 30
Your property manager's annual financial summary is the foundation of your tax return for the investment property. Confirm with your manager that the end-of-year statement will be available before you need it for your accountant. This should show all rent received, all expenses charged, and the net financial position for the year.
Keep all invoices for maintenance and repairs done directly. Keep your insurance renewal certificates, council rate notices, and water charge receipts. If your property is financed, obtain your loan statement showing the interest paid during the financial year.
The Depreciation Opportunity
If you have not obtained a depreciation schedule for your Townsville property, the end of the financial year is the reminder to do so. The schedule is prepared by a registered quantity surveyor and identifies the depreciable components of the building and plant.
For properties built after 1987, the building allowance is particularly significant. For properties with recent improvements such as a new air conditioning system, hot water unit, or floor coverings, the plant and equipment depreciation can provide a meaningful deduction.
Timing Repairs Around June 30
Repairs and maintenance incurred before June 30 are deductible in the current financial year. If you have been contemplating necessary repairs on your Townsville property, completing them before the end of the financial year pulls the deduction forward.
This applies to genuine repairs and maintenance. Capital improvements, which must be depreciated rather than immediately deducted, cannot be brought forward in the same way. Your accountant can advise on the distinction.
The Rental Managers provides end-of-year financial summaries for all managed properties. If you need your year-end documentation, contact the office.
