Tax Article June 2017
This is NOT a boring tax 101 article
it is for experienced property investors
My key points
1. Most accountants are lazy
9 out of 10 people I talk to do not know if their accountant is doing the best for them, and getting back all they can.
What is your accountant missing out on that gives more money on your pocket
2. Your property and investments are a business , treat it as such, as a professional
3. Understand ATO profiling of who you are and what you can claim within the guidelines
4. Know your stuff, spend time to get sorted and be prepared for tax time. No one else will for you.
5. Ask all your questions to your accountants, don’t be shy , empty your head , push them- that is what you pay them for
Common Mistakes
1. ALL interest charged
- Loan for property
- Loan/ equity from home
- Credit card for rates and all expenses
2. Business Expenses
Insurances, phone, car, all advice, internet, meetings training/ courses/ education, the lot
3,. Office/ home office
Furniture, including depreciation of, power, other
Eg. $1000 on a laptop or a computer each year
3. Travel to and from your properties
Due diligence time, pre purchase, during contract and building, at settlement/ completion
2 inspections per year, per property
All travel, meals, meetings, expenses (phone etc)
4. No Tax variation in place to assist cashflow during the year.
Focus that money each pay period on smashing your home loan
5. Scrapping and Depreciation
What works did you do, what was taken out
And then no matter how old the property ask a professional QS to give you a report
6. Being chicken to move away from a crap accountant, especially long term ‘family ones’
They are costing you a fortune, just do it
7. Giving someone else the responsibility for your money and tax affairs, own it
What to Do
1. Check your team
Do they own 5, 10 properties themselves, if not are they really for you.
2. Check last years tax returns for what is missing, from our list
3. Book at time with your accountant prior to June 30 to go over your property business.
Review where you are at , any ATO rule changes and what needs to be done
4. Take the time to get all your stuff in order and take the time to prepare, then send to your accountant, by the end of August
5. Send us your tax return drafts for review prior to submission to the ATO.
Let us review and give you the questions to ask your accountant, you just use ours… your call
Overall
ALL THE SMALL THINGS ADD UP TO A MASSIVE DIFFERENCE TO THE CASH IN YOUR POCKET
EVERY 1000 MISSED MAKES A DIFFERENCE
FROM MY EXPERIENCE THE AVERAGE MISSED IF YOU HAVE 2 PROPERTIES IS AROUND $4500
Tax is a key area that when you take full personal responsibility can make a massive difference to your results and for you
Take the time to master it, and it will deliver back to you in spades of cash
Always know you can give us a call when you need a hand
I look forward to meeting you
