What are the documents required to do my taxes?

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Anna90
Posts: 51
Joined: Sat Aug 03, 2013 9:35 pm

What are the documents required to do my taxes?

Post by Anna90 »

Hello there,

I recently purchased an investment property. I know that I have to pay the taxes. However, I have no idea what documents I would require. Could anyone guide me in this matter?

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Otto Dargan
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Location: Sydney, Australia
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Re: What are the documents required to do my taxes?

Post by Otto Dargan »

Hi and welcome to the forums Anna90.

Congratulations on securing the property! It is important to manage your records and documents for tax purposes. It is recommended that you talk to your accountant to discuss your taxes. The documents that you should provide your accountant are as follows:
  • Purchasing expenses
    It is recommended that you provide a copy of the following relevant pages from the contract of sale and your settlement statement to the accountant so that they can make sure no deductions are overlooked:
    • Stamp duty
    • Pest, building and strata inspections
    • Conveyancing fees
    • Bank cheque fees
    • Borrowing expenses
    • Penalty interest
  • Management expenses
    Your property manager will send you an annual statement showing the total rent received as well as the total management fees of the investment property. The statement will include the following expenses:
    • Property manager fees
    • Letting fees
    • Tribunal expenses
    • Handling fees, postage fees and sundry expenses
  • Rates and levies
    You should keep the rates notice and levy notices you receive during the year. Here are the notices that you will receive during the year:
    • Council rates
    • Water rates
    • Body corporate / Strata levies
    • Land tax
    If you purchased the property this financial year then you should not forget to add in or deduct the settlement adjustments for the strata fees, water rates and council rates.
  • Loan expenses
    With most lenders you will receive a final statement at the end of financial year which confirms the total interest and fees charged during that year.
  • Repairs and renovations
    You need to give your accountant a breakdown of whether your costs were for repairs or renovations because they are treated differently by the Australian Taxation Office. Different costs that fall under repairs and renovations are:
    • Plumbing or electrical repairs
    • Renovations
    • Cost of construction
    • DA fees, architect fees, surveys and compliance certificates
    • Gardening
    • Cleaning
    • Pest control
There are additional documents that you may have to provide your accountant.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Anna90
Posts: 51
Joined: Sat Aug 03, 2013 9:35 pm

Re: What are the documents required to do my taxes?

Post by Anna90 »

Could you kindly list the additional documents as well?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What are the documents required to do my taxes?

Post by Otto Dargan »

Hi Anna90,

You should provide the documents for additional expenses such as:
  • Building insurance
  • Landlords insurance
  • Depreciation schedule
  • Stationery, telephone expenses and postage
  • Travel to inspect your investment property
  • Legal fees
In addition to that, you can find a total amount of rent received and water usage charged to the tenant on the the annual statement from your property manager.

It is important to note that this is just a general guide and you must contact your accountant for a personalised list of documents. If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Anna90
Posts: 51
Joined: Sat Aug 03, 2013 9:35 pm

Re: What are the documents required to do my taxes?

Post by Anna90 »

Thank you, Otto! This information is very helpful. I will talk to my accountant right away.

Bukowski86
Posts: 49
Joined: Thu Jun 27, 2013 5:04 pm

Re: What are the documents required to do my taxes?

Post by Bukowski86 »

Hi there,

I live in Sydney and my wife and I are thinking about renting out our home. But we do not know about the tax implications for that. Could anyone in this forum please help us out?

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Otto Dargan
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Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What are the documents required to do my taxes?

Post by Otto Dargan »

Hi Bukowski86,

When you turn a home into an investment property and you decide to rent it out, then there are certain things that you must take note of such as:
  • The net rental income needs to be declared in your tax return like for any other investment property.
  • You may claim running costs such as water and repairs as well as non-cash costs such as depreciation.
  • When the property is jointly-owned, you must split the rental income based on the ownership interest.
  • It may be possible for you to claim back interest on the loan that was used to buy the property.

You may use an investment loan offset account to help you claim the interest. Please free to call us directly if you have any enquiries.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Bukowski86
Posts: 49
Joined: Thu Jun 27, 2013 5:04 pm

Re: What are the documents required to do my taxes?

Post by Bukowski86 »

Thank you so much for the information. I will talk to my wife about this and give you a call if something comes up.

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