Investment Property Tax Return

Rental Property Deduction
Majority of those in the high income group within Australia invest in rental properties as an solid method of investment. Because real estate has been on a stable increase throughout many years in Australia. Secondly Australian government has issued a special tax deduction policy for people who invest in rental properties which is known as negative gearing.  This ‘negative gearing’ policy lets you exempt 50% of profit tax , when you make losses at rental property, you can deduct it from your income. So it gives great advantage for people who pays high income tax.


No matter if you make profit or losses; it will count it as part of your income at the end of the financial year. It means you must prepare rental property income and expense details to do your tax lodgement. Real estate agents will provide you a summary of your rental property, and you need the ask bank for your investment loan interest as well.


You have to provide maintenance receipts of your rental property if it happened in past financial year.


The other key point is if you have new or as new rental property, it may be optimal to apply for property depreciation from your income. But you have to provide depreciation report which can be bought from authorized property evaluation agents. Depending on the structure of the property, you can have 1.2% of the value of the property deducted. This report can be used for up to 10 years.


If you manage the rental property by yourself, the rental price has to match the market price.


Once you prepare all the tasks listed above, you can easily conduct your tax form lodgement.

Tax Point View of Rental Property
How can reasonable increase your wealth rapidly, this is major objective for everyone through lifetime. How can use investment methods to reduce your income tax? In Australia, high income groups normally to invest in real estate, because it achieved solidity growth from historical. And government has negative gearing policy for long time. You can deduct losses from your income tax. And you have 50% profit exemption when you sold it. That is why!
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