From our corporate director

Dean O’Brien.

It is now time to start preparing for the end of financial year (EOFY) for your investment property involves several tasks to ensure that you're maximizing your tax benefits and complying with relevant tax regulations. Here are some steps you can take to prepare for the EOFY:

1. Collect all receipts and invoices: Gather all invoices and receipts for expenses related to your investment property, such as repairs and maintenance, property management fees, and council rates.

2. Review your income and expenses: Review your rental income and expenses for the financial year to ensure that all transactions are recorded accurately, and you're claiming all eligible tax deductions.

3. Consider prepaying expenses: If you plan to incur expenses for your investment property in the coming year, you may be able to prepay them before the EOFY and claim them as tax deductions for the current financial year.

4. Assess your depreciation schedule: Review your depreciation schedule to ensure that you're claiming all eligible tax deductions for the depreciation of your investment property and its assets

5. Seek professional advice: Consider seeking advice from a qualified tax professional to ensure that you're complying with relevant tax regulations and maximizing your tax benefits.

By taking these steps, you can ensure that you're wellprepared for the EOFY for your investment property, and you're taking advantage of all available tax benefits and deductions.

I can provide some common mistakes that property investors make when preparing for the end of the financial year (EOFY):

1. Failing to keep accurate records: One of the biggest mistakes that property investors make is not keeping accurate records of their expenses and income throughout the year. This can lead to errors when it comes to calculating tax liabilities and claiming deductions.

2. Not claiming all eligible deductions: Property investors should ensure that they are claiming all eligible deductions such as interest on loans, property management fees, repairs and maintenance costs, and depreciation.

3. Failing to review their investment strategy: Property investors should review their investment strategy at the end of each financial year to ensure that it is still aligned with their long-term goals.

4. Not seeking professional advice: Many property investors make the mistake of not seeking professional advice from an accountant or financial planner when it comes to tax planning and investment strategy.

5. Ignoring changes to tax laws: Tax laws can change from year to year, and property investors need to stay up-todate with any changes that may impact their tax liabilities and investment strategies.

6. Not keeping track of deadlines: Property investors need to be aware of all the deadlines associated with the end of the financial year, such as lodging tax returns and making superannuation contributions.

7. Failing to plan for the future: Property investors should use the end of the financial year as an opportunity to review their investment portfolio and plan for the future. This may involve setting new investment goals, assessing the performance of existing properties, and considering new investment opportunities.

In conclusion, property investors can avoid making mistakes when preparing for the end of the financial year by keeping accurate records, claiming all eligible deductions, reviewing their investment strategy, seeking professional advice, staying up-to-date with tax laws, keeping track of deadlines, and planning for the future.

Regards,

Dean O’Brien Director