Look beyond the obvious when calculating tax deductions
Tax deductions can be concealed behind walls, in ceilings, under floors and on roofs – the combined value of which can...
With the end of financial year approaching, coupled with the current climate, two experts have shed light on the value of investors having great relationships with accountants.
Speaking on the latest episode of What’s Making Headlines, Phil Tarrant and Tom Panos discussed how this time of year presents ample opportunity to get relationships with your accountant back on track.
“I can’t even believe it. I was talking about it with someone yesterday and he said, ‘You know it’s tax time?’ With coronavirus going on, I think it was the last thing on people’s minds,” Mr Panos said.
“The best property investors I know, and real estate agents who are business owners, have a good relationship with an accountant,” Mr Tarrant added.
“An accountant can be the key person who is part of your team as a property investor. They can help potentially make your property portfolio a negatively geared position to a positively geared position. So, there are lots of tools and capabilities for property investors with a good property-based accountant.
“It all comes down to how well you keep your records, you know? An accountant can only do what they can do based on the information that you give them. So, it’s accountable to you, whether you’re a business owner, real estate agent, or a property investor to give your accountant all the information they need for them to do their job effectively and get you the best outcome.”
Going forward, both Mr Tarrant and Mr Panos offered some tips for investors and real estate business owners to see them properly prepared ahead of tax time.
“Most of us hate it, you know? I have a lot of different entities I’ve got to do tax returns on, and I dread it every single year. But I keep on top of it during the course of the year so at a point in time when my accountant needs information around my property portfolio, I just can send it to him without having to bury myself away for a week to find it all,” Mr Tarrant shared.
“So, it’s one of those things, if you manage it over the course of the year, it’s relatively easy when it comes tax time. And that would be my recommendation.”
Meanwhile, Mr Panos advised: “A big tip is taking photos of your receipts on your camera phone and then sending it to your bookkeeper there and then on the spot. And it’s something that particularly when you’re traveling, you’re picking up a lot of pieces of paper along the way.”
“All I do is pull out my phone, take a snapshot, I email it straight away, and it’s out of my head. I’m not worried about the washing, the dry cleaning, you’ve left those receipts in there.
“And I know I’m not talking about necessarily property expenses. I’m talking about any general expenses. The way that you use technology can help you keep on track of things.”