With June 30 fast approaching, it’s reminding many of us how stressful tax time can be. To claim back the most at tax time, it’s crucial for property investors to know the key tax return dates.
Owning an investment property requires investors to monitor their income and expenses to ensure they achieve the best return. While a stress-free tax time experience is a key selling point, tax return dates also provide a roadmap to ensure investors make informed expense-related decisions.
Key tax return dates
Tax return lodgement dates can vary between individuals. The key factors that determine an individual’s relevant date is the amount of their tax liability, and if they lodge their own tax return or do so through an accountant.
Large and medium trusts with an annual total income of more than $10 million in the last year lodged, and were taxable in the latest year, must lodge their tax return by this date.
Large and medium trusts that are new registrants must lodge their tax return by this date.
The 31 March deadline is only for those with a tax liability greater than $20,000. These individuals, partnerships and trusts (excluding large and medium trusts) must lodge their tax return from the previous financial year by this date.
If an investor lodges their tax return with an accountant, they must lodge their previous financial year return by this date.
Although not an official lodgement due date, a concessional arrangement is available where any penalties will be ignored if returns are lodged and paid by June 5. Individuals, partnerships and trusts may be eligible for the 5 June concession date if they meet the Australian Taxation Office’s (ATO) requirements.
The end of financial year is a key date that should be marked in everyone’s calendar.
Taxable income and expenses is measured in each financial year. Investors are encouraged to pay all the expenses they can before the end of financial year to get more back in their pocket at tax time.
Where possible, expenses such as interest, insurance, tax depreciation schedules and other ongoing expenses should be pre-paid before this date so that they can also be claimed ahead of time.
If an investor chooses to lodge their own tax return through the ATO’s online MyTax portal, they must lodge their tax return by October 31.
How to keep track of income and expenses throughout the year
The second element of a stress-free tax time is keeping strong records of income and expenses throughout the financial year.
Owning an investment property makes tracking records more complex as some, such as maintenance and repairs, can come unexpectedly. MyBMT helps thousands of investors record and track these directly with its income and expenses tool.
This feature of MyBMT simplifies the process by providing specific categories like body corporate fees, cleaning costs and insurance. Investors can share their expenses directly with their accountant through the platform by simply clicking the ‘Email my accountant’ button.
If the investor lodges their own tax return, the MyBMT income and expenses layout is designed to seamlessly sync with the ATO’s MyTax platform.
BMT Tax Depreciation works closely with an investor’s accountant to ensure investor’s claim every depreciation deduction they are eligible for. To learn more about property depreciation, Request a Quote or contact the BMT Team on 1300 728 726.