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

Must know Property Purchase Journey Professionals List of crucial professional services for any property purchase journey.

Impact of a Potential Interest Rate Rise Tips on what steps existing and prospective borrowers can take in the wake of an anticipated increase in interest rates.

EOFY Tips for Borrowers Easy steps for a smoother tax filing process

All you need to know about LMI While LMI protects the interest of lender, it does offer borrowers the benefit of getting on the property ladder faster. Here's our take on the important aspects of LMI every borrower should be aware of

A Guide to making a property offer Non-negotiable steps no buyer should skip while making a property offer.

View all articles



Enquire now