It’s the end of the financial year, and my landlords are frantically making last-minute preparations for tax time to put their best foot forward. Most of the time that includes calling me, their Property Manager, and asking three main questions:
- What information does my Accountant need?
- What do I need to declare?
- What can I claim on?
At Petrichor Property we use Kolmeo software so answering the first questions is often easy.
Any money received or paid out (on the landlords’ behalf) will need to be clearly documented and sent to you are the end of the year. This information can be sent directly to your accountant to help them reconcile your tax year.
The second question is harder, and we always recommend that you seek advice from your Accountant. Here are some guidelines:
Rental income – you will need to advise how much rental income you received over the financial year. (this would be on your Kolmeo statement)
This income would need to be declared by whoever owns the property. If it is an individual, it would be declared on your individual tax return. If it is owned by your Super or another entity confirm with your Accountant.
Finally, what could I claim? This final question has lots of things to consider:
- Mortgage interest
- Management costs, including property agent fees and commission.
- Maintenance costs, including cleaning, gardening, pest control and repairs.
- Insurance – landlords, mortgage, building, contents, and public liability
- Body corporate fees and charges
- Land tax
- Depreciation
And potentially more. The good news is that your statement from Kolmeo would include your management costs & any costs you have asked Petrichor Property to pay on your behalf.
As Property Managers we wear many hats, which can often become blurred at this time of year. So as a rule of thumb – have your clients check with their Accountant for a full understanding of what they can do and make sure your clients understand the End of Financial year statement provided by you.
You might still look for people to help you manage the financial aspects for your investment property. We have had positive dealings with “Pivotal Finance” they may be a good match for any mortgage options. Alternatively, if you are struggling for assistance with your depreciation schedules, Duo Tax may be able to assist you.
So, as we reach the end of the 2425 financial year, I would be interested to hear your thoughts / opinions on how to assist our ever-busy landlords. Looking forward to hearing from you.