Good record keeping pays
Even if you use a tax agent to prepare your tax return, it is important that you keep copies of documents and records relating to:
- the costs incurred when you purchase a property;
- the rental income you receive;
- expenses you incur while owning the property;
- the costs associated with selling the property
You may need to keep some of these records for longer than five years, depending on how long you own the property as it will help you work out the capital gain or loss on your investment correctly, and ensure you do not pay more tax than you need to when you sell.
To find out everything you need, get in touch with your accountant well ahead of tax time.