Investment Property / Negative Gearing

It is always advisable to consult a tax adviser however there are things to claim on tax are interest on your investment loan, accountant fees, insurance on the rental property, repairs and maintenance, also corporate fees, land tax, depreciation on the building also include fixtures and fittings.

Note: Stamp duty is not included in a tax however it is included when you buy a property but it can help you to reduce any capital gain on tax payable if you sell the property in profit.

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Tax benefits in investment property

You should always take advice from professionals, it is important as they can advise you better without breaking tax office rules. Maintaining proper records will lead you to maximize your investment in property tax investment. You should always separate your home expenses from rental property, also should hold onto the receipts so that
you can claim expenses on tax.

Negative gearing means that you borrow money for an investment and the income is less than the expenses. This is a very common scenario for an investment property, where the rental income is less than the expenses, which means you are at a loss. If you are making a loss in your investment and is costing you money then you should have another source of income to fund your expenses.

Capital Gain means the amount you receive after selling your capital assets such as property or shares. Capital gains need to report in your income tax return and pay tax on capital gains, this is a part of income tax which referred to a capital gain tax, it is not a separate tax. Capital gain is added to your income and it will eventually increase the tax you pay, you need to seek advice from your tax adviser on the amount of tax you will pay and keep aside the funds to cover the relevant amount. Capital gain tax is not applicable on depreciating assets such as business equipment and fitting on rental property. If you incurred a loss then you cannot claim it on other incomes but it will help to reduce the capital gain.

Don’t ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers. Tilman J. Fertitta

Foreign Income Tax Returns means that you need to pay tax on worldwide income if you are an Australian resident. So you have to declare income tax return on foreign income.

Foreign income includes business income which means you need to pay Australian tax return on all the foreign business activities depends on a number of factories in other countries.

Service income or employment is also included in a foreign income tax return which means that you need to declare tax for all the income i.e. salary, consultation fees or any other remuneration.

If you have done any investments or own any assets outside Australia then you declare the foreign income tax return that includes, pensions, rental income, dividends and share, government pensions, income from super funds, interest on bank deposits.

Tax paid on overseas income which means that if you have paid tax overseas then you may be able to claim for foreign income tax offsite credit. You must have proof of all the tax paid on overseas income. You can seek advice from a tax advisor as they can guide you on how to claim the income tax offsite credit.

If you are not an Australian resident for taxpayer then you don’t need to declare any income you received from overseas.

Sole Trader means the person who runs his own business, they operate their own business as a sole trader, they manage and control their own business. You can also employ the worker for your business. They are responsible for paying workers super and also can save funds for retirement.

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