Yellow Brick Road: Home
YBR

Andrew Morello: The tax system and investment properties

In this article:

An excerpt from Andrew Morello's eBook The Morello Matrix: your guide to property investment. Andrew, the winner of the first series of Celebrity Apprentice Australia, provides his comprehensive personal approach to buying real estate and building a property portfolio.

To get your free copy of the full Morello Matrix eBook visit www.ybr.com.au/morellomatrix

Income deductions

For your investment properties, these are some types of costs you can claim against the income from the rent:

  • advertising for tenants
  • repairs and maintenance
  • cleaning, gardening and pest control
  • bank charges, insurances
  • body corporate fees and charges
  • borrowing costs i.e. valuation, conveyancing
  • interest repayment cost on mortgage
  • council rates, land tax
  • depreciation of assets
  • legal expenses, property agent fees and commissions
  • stationery, postage and property-related travel
  • undertakings to inspect, maintain or collect the rent
  • water charges

Take the first step

If you make a capital gain on your principal place of residence, the gain is usually exempt from capital gains tax (CGT) if the property is held for more than a year.

Investment property has its net capital gain taxed at your marginal income tax rate, in the year the contract for sale is signed.

It is never a waste of money to obtain professional taxation advice from a registered tax agent before purchasing a property. Don’t wait until the purchase is in train.

Feature articles

How to Find and Keep Good Tenants Is there a secret formula for renting your property to the best tenants? Let’s take a look.

What to Know about Home Loan Serviceability? When applying for a home loan, how much debt is it okay to have?

5 Ways to Calculate How Much Life Insurance You Need Think it's complicated trying to figure how much life insurance cover is enough? It doesn't have to be.

How To Get the Right Loan For Your Car Whether you're buying a new car or opting for a pre-loved model, you’ll face a smorgasbord of finance options. When considering a loan for your new set of wheels, here are some tips for choosing wisely.

The Importance of a Mortgage Broker This article will shed light on the Royal Commission's recommendations and briefly highlight some of the benefits of using a mortgage broker.

View all articles



Enquire now