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Accounting for Property Investors

BOA & Co.’s property accountant services are tailored to property investor. Whether you are a seasoned investor or a newcommer, our service package can help you maximise your return of investment and protect your assets.

As Australia’s leading real estate accountant provider, we know the challenges faced by many investors. Drawing on years of industry experience, we deliver a range of services to our clients:

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property investor, real estate, commercial investor

Tax Item related to Property Investors

Tax Deductions

As the owner of the investment property, you can claim deductions for various expenses related to the leased property and taxes on loan interest. If the property is a tenant or is available for rent, you can claim these fees from the income generated by the property. According to management rules, certain investment property expenditures incurred during the lease or lease of an investment property are regarded as rental expenditures or rent reductions. The tax consultant will provide you with a clear image, explaining that you can make a request according to your specific situation. Generally, the following expenses can be deducted from taxes:

*For capital gains tax purposes, acquisition costs such as transportation costs and stamp duty will be added to the cost basis and are non-deductible expenses.

Negative Gearing

When the cost of owning leased property exceeds rental income, a negative debt-to-asset ratio exists. The difference representing the loss can usually be used to offset other capital gains.

In negative debt arrangements, interest is the most important part of the tax return. As long as your property is available for rent, interest on any amount you lent to the property is tax deductible, including payments used to purchase the property, perform repairs and improvements, or deal with tenant-related issues. However, only loans used for income-generating purposes are entitled to deductions. For example, if you borrow a loan to purchase real property and leased property, the tax deductible part is limited to the interest on the leased property, not the real property.

Investment property is not always negative. If the rent exceeds the cost of owning the property, with a favorable debt ratio, the owner can expect to pay taxes on the profits generated by the property.

Capital Gain Tax

When you decide to sell your investment property, any profit you make will be restricted by CGT. The taxable portion of the additional profit will be included in the taxable income of the sales year.

The cost basis for calculating capital gains should be the original price of the property plus the cost of buying and selling, such as stamp duty, legal fees, and agent’s sales commission. Increasing purchase and sales costs can help reduce profits for tax purposes. Second, if the owner owns the property for more than 12 months, they have the right to demand a 50% discount on the capital tax on the property when paying taxes. For example, if you bought the property for $400,000 (inclusive of all expenses) and sold it for $500,000 (inclusive of both ends), then your capital gain would be $100,000. If the property is held for more than 12 months, only 50% of the capital gain should be assessed. This means that only $50,000 of capital gains will be subject to capital gains tax at your marginal tax rate.

The Check List

Contract of sale

Body corporate notices


Depreciation report

Depreciation report

Legal fees

Pest control

Travel expenses

Rental Summary

Settlement letter

Home insurance

Bank statement for loan interest

Repair related expenses

Repair related expenses


Water rate


Council rates

Landlord insurance

Land tax

Depreciation report invoice

Depreciation report invoice


Other related expenses



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