- Often talked about in the media is property tax reform
- But less discussed is how to effectively deal with the current tax arrangements
- TaxTank aims to help property investors navigate the complex tax environment
Often in the media spotlight for property is the tax system.
Property groups have long advocated for reform. Stamp duty, for example, has been a major area of contention. It comes as this year saw continued and wide calls for an end to stamp duty.
These lobbying efforts seem to have been mildly successful, with the ACT recently axing the tax for off the plan apartment and townhouse purchases up to $500,000.
However, less widely discussed is how to effectively operate within the current tax system.
Gold Coast based startup, TaxTank aims to help property investors achieve this.
TaxTank, designed and created by accountants, looks to help individuals by providing tax tools to minimise tax and maximise deductions on property investments.
They claim it is the only software on the market that shows individuals their real-time tax position 365 days a year, giving them the ability to manage how much tax they pay.
TaxTank also utilises data from property research group CoreLogic, to forecast an investor’s property growth.
Founder for TaxTank, Nicole Kelly said Aussies are having to navigate an undeniably complex tax system with rules that are constantly changing.
“The ATO is jumping to fill the gap with MyTax; however these services are geared to ensure compliance, not effectiveness and completely remove accountants from the equation.”
According to the ATO, a recent random sample of returns claiming rental properties found that 9 out of 10 of them contained errors. The number one cause leading to the disallowance of rental property claims was missing receipts or other documentation to support a claim.
“TaxTank has a built-in platform for accounting firms to directly interact with clients and share information to make sure clients are getting it right and claiming every possible deduction,” Ms Kelly explained.
TaxTank aims to help individuals:
- Monitor their investment properties, manage depreciation, expenses and property growth forecasts;
- Manage tax for properties let through accommodation sites like Airbnb and Stayz;
- Integrate with live bank feeds to reconcile transactions throughout the year;
- Store all of their receipts and important documents to protect them from ATO audits;
- Estimate their real-time tax position to make better decisions to reduce tax;
- Invite their accountant, chat live and review their tax position.
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For more information, visit the TaxTank website.
