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In This Video:

00:22 Ways to Get Your Maximum Tax Return
01:13 Reputable accountant with property investment experience

G’day guys, Nic Griffith here. Now, if you’re looking for property investment advice, property investment strategies, or a property investor mentor, then you’ve clicked on the right place.

Now, it’s that time of year, isn’t it? Tax time. It’s time where property investors start stressing about getting their tax done and getting all their ducks in line to make sure they get the maximum tax return. At the end of the day, that is what it’s all about as far as managing your portfolio goes. Making sure all your ducks are in line, all your admin squared away, in order to get your maximum tax return to ensure that we’re claiming the maximum deductions, our properties are going to be paying for themselves, and keeping our cash flow positive.

Something a lot of people get stressed about – “Ah, Nic, once I get past 1 or 2 properties, how do I control and deal with all the admin, and make sure it’s all easy to go for tax time?” It’s actually very easy, and it’s not as daunting as it sounds. There is actually only 3 documents you need, and 1 person. Obviously, your accountant, who you want to be a reputable accountant with property investment experience themselves, so they know all the ins and outs of what’s required.

Then, for your own, there are only 3 documents that you need. The first one’s your property manager’s statement. The second one is your depreciation schedule. The third one is your own bank statement.

Your property manager’s statement. That’s going to show all the cash flow – income coming in and expenses going out – because you’ve hired and employed a reputable property manager to do it properly for you. They will provide you an end of financial year statement outlining all those incomings and outgoings. Simple.

Depreciation schedule. This is key. Depreciation is that little beautiful thing that the Australian Tax Office, the ATO, does. It allows us to claim the depreciating value of the building itself. The bricks are worth less today than they were yesterday etc. The carpets, the curtains, the capital works, etc. What we do is have a depreciation schedule done for us. We’re going to hire a quantity surveyor to go do that for us. This is what we help our clients out with. Costs about $650, and the best $650 you’ll ever spend.

You’ve got your depreciation schedule, along with your property manager’s statement, and the third one is your own bank statement showing all your interest payments to the bank on your loan. Your interest-only loan will require payments. Your own bank statement shows those payments.

Your hand those 3 forms in to your accountant – property manager’s statement, depreciation schedule, your own bank statement. Give it to your accountant and they’ll tell you exactly what your tax return will be on that property.

On our full training days, we’ll go into a lot more detail about tax, about finance, about structures, about markets. If you’re interested in coming along to one of our complimentary training days, we do run them all over the country, in all the capital cities and in a lot of the regional centers too. Jump on our website, click on the training tab, it will highlight and show you all those locations. Pick the one closest to you. Hopefully we’ll see you there. Cheers.

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