As we approach the end of the 2022/2023 financial year, it's crucial for landlords to not wait until the last minute to plan for their taxes. To prepare for tax time, here are some steps landlords can take:

Keep rental income and expenses organised: Keep track of all rent received and expenses related to the rental property, such as repairs, maintenance, property taxes, insurance, etc.
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Understand tax deductions: Familiarise yourself with potential tax deductions, including depreciation expenses, mortgage interest, and property taxes that you may be eligible for.

Maintain good records: Keep thorough records of all rental income and expenses throughout the year, including receipts and invoices.

Consider professional help: It may be beneficial to hire a tax professional or accountant to assist with tax preparation and ensure all applicable deductions and credits are claimed.

Stay updated on tax laws and regulations: Speaking to the Property Manager’s at Lands Real Estate can be advantageous, as they can keep you informed about any changes in tenancy laws and regulations that may affect your investment. Plus, property management fees are tax deductible.

Obtain a depreciation schedule: Having a depreciation schedule prepared for your investment property can be highly beneficial. A depreciation schedule is a detailed report that outlines eligible items for tax deductions, such as wear and tear on the building structure, fixtures, and fittings. These schedules can be prepared by quantity surveyors or specialist companies and are also tax deductible.

Benefits of a depreciation schedule: A depreciation schedule can help you identify all eligible deductions for the current financial year and up to 40 years in the future, potentially reducing your taxable income and resulting in significant tax savings. Additionally, claiming depreciation deductions can improve cash flow by providing more funds for reinvestment or covering expenses.

Consulting your accountant can provide further guidance on maximising ongoing tax benefits associated with owning a high-quality, well-located investment property.