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