Tax Deductions
When your property is rented out there are a wide range of expenses that you as a landlord may be able to claim as a tax deduction, including the interest on your investment loan!
Ask your tax adviser before you complete your tax return and keep all invoices and receipts associated with your property.
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Negative Gearing
When all the costs of owning your investment property exceed your rental income, your property is negatively geared.
The difference between the income and your costs may be offset against other income like your salary, allowing you to pay less tax overall.
There are rules around what you can or can't claim, which is why it's best to seek professional tax advice.
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Capital Gains Tax
When you're ready to sell your investment property, you could make a profit on the sale which is known as a 'capital gain'. Capital gains are taxable. In your tax return this income is added to any other income you've made in that financial year, and then the marginal income tax rates apply to the combined amount.
If you own the investment property for more than 12 months, generous tax concessions may work in your favour.
