4 Benefits of a Brisbane Property Manager at Tax Time
It’s that time of year again where your Brisbane property manager becomes even more important – Tax Time! Hiring a Brisbane property manager has many benefits. During the year they take care of your investments ensuring that everything gets done. On top of these day-to-day services, they also provide a range of benefits at tax time. Here are our top four benefits that come from having a property manager at tax time:
1. Brisbane property manager fees are tax deductable
As with a lot of other expenses from your investment properties, you can claim the fees paid to your Brisbane property manager. So not only are you getting a professional to manage your property, you’re also getting the opportunity to recover some of the costs.
2. Brisbane property managers help reduce your paperwork
As busy people we can all appreciate a time saving opportunity. A huge incentive for hiring a property manager is having them do most of the paperwork! Having someone else run the books means most of the hard work is done when tax time rolls around. For example, property managers should give you a statement with records of the property’s income and expenses for the year. Voila! Your accountant will thank you.
3. Brisbane property managers can help you cut down on errors
If you’re self managing your investment property it can be easy to get something wrong. Many people who self manage are unsure of at least one aspect of property management. For example, our property managers often receive questions about the rules around deductions. Having a property manager keep your financial statements up to date throughout the year will almost certainly minimise the risk of making an error at tax time. Any errors are likely to be picked up by the ATO’s increased audit activity. This is particularly true with regard to any errors in total income or declaring too many and/or wrong expenses. Using a Brisbane property manager will help you get it right and avoid any headaches.
4. Brisbane property managers can give advice on expenses and deductions
As we’ve mentioned, a risk for investment property owners is not understanding what can be claimed at tax time. Property managers can assist by advising whether repairs and/or proposed renovations are likely to be deemed capital improvement to the property. They can also answer questions around deductions. This can help owners determine what the return on their investment is likely to be come tax time.
If you’re thinking you need a property manager or you have questions to ask a Brisbane property manager give our team a call today on 07 3233 3988.
You can also visit our articles on the services provided by Blocksidge’s Residential Property Managers and our list of FAQs for Brisbane landlords and investment property owners.
The ATO also has a great article on their website that outlines the top 10 tips to help rental property owners avoid common tax mistakes.
This article is general information only. We always recommend that property owners seek advice from their accountant or financial advisor to ensure that they make the right decision for their personal situation.
