An investment property refers to a real estate property acquired to obtain a return on the investment by rental income, the property’s potential resale, or both. The property may be owned by an individual investor, an investment company, or a trust.
Tax advantages for investing in property
- Many of the costs involved with owning an investment property (eg advertising for tenants, interest and paid on your loan, maintenance, etc) may be tax-deductible.
- Property investors can potentially use the losses arising from negative gearing as a tax deduction.
- Property depreciation – the deduction without an expense
When you want to invest in residential properties, you need to consider the following and we recommend you seek professional advice:
- What type of properties you should invest in? House, units, townhouses, apartments, or land?
- What loan structure you should set up? P&I payment, interest only payment? Offset account?
- What structure you should use? Company, family trust, unit trust, hybrid trust or individuals etc?
- How to minimize land tax?
- How to minimize capital gain tax when you sell the investment properties in the future?
There are so many things to be considered before the settlement. If you make one simple error, the costs to fix this can be huge in the future. It may also impact on your borrowing capacity and limit your future investment opportunities.
TSK Accountants are investment property taxation specialists, we will give you a peace of mind by providing specific advice, setting up the right structure, and let you enjoy the full benefit of investment properties. With a local presence, we’re proud to provide our services to businesses in Hoppers Crossing and surrounding suburbs such as Tarneit, Truganina, Williams Landing, Point Cook, Werribee, Wyndham Vale, and Manor Lakes. We can also assist clients across greater Melbourne with all their accounting needs.