It’s the same time every year but it seems that no matter how prepared investors are for June 30, when it comes to gathering up the necessary documentation to complete tax returns, this exercise creates more stress than it should.
This process can be made much easier if proper methods of record-keeping are put in place – and the best part is that once you have your system in place, it should work every year.
To make tax time easier this year, all you need are a few manila folders marked with the following:
It also makes sense to keep this information together in a secure location. A good idea is to scan documentation and store the information electronically to minimise the piles of paperwork. Some mobile phone apps allow you to take a photo of a document and save it in various document formats. However, it is important to retain the hard copies.
Be aware that any records relating to deductions claimed for property expenses must be retained for at least five years in order to comply with the requirements of the Australian Taxation Office.
Take the extra time to set up your system this year and when the next June 30 rolls around you will be so glad you did.
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