What is Negative gearing?
Negative gearing is where an investor buys an asset, but the income generated by that asset does not cover all expenses and costs.
Investment Property & taxes
There are mixed opinions and advice available on the implications of property investment & taxes. We offer below some of the different terms available.
What is Positive gearing?
Positive gearing is where an investor buys an asset, but the income generated by that asset covers all expenses and costs.
Some typical deductions that can be related to rental property
- Strata management or Body Corporate Fees
- Building depreciation
- Cleaning Costs
- Council Rates
- Depreciation on new fixtures
- Borrowing Expenses
- Insurance Costs
- Interest on loans and related bank charges
- Land Tax
- Pest Control Costs
- Property Agent Management Fees
- Repairs and Maintenance
- Telephone, postage and stationary
- Water Rates
We acknowledge above list contains many deductions but it is not an exhaustive list and we always recommend our clients seek their own tax accountant’s advice.