All Topics / General Property / are +geared properties tax deductible

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  • Profile photo of stevefazakstevefazak
    Member
    @stevefazak
    Join Date: 2003
    Post Count: 35

    Hi All

    are the following tax deductible at the end of the financial year.

    Management costs
    Shire Rates and Water Rates
    Strata Body Corp. fees
    Insurance
    Repairs Maintenance

    I am trying to work out my cash on cash return, and when I add these I come up with a negative cash flow property which should really be postive

    Profile photo of ChrisHallChrisHall
    Participant
    @chrishall
    Join Date: 2003
    Post Count: 21

    You should always check such things with an accountant … but here’s my two bits worth (:

    All operating expenses are tax deductable on any business adventure – investment property is a business adventure. To have a truely positively geared property you can not (my opinion) off set rental income against a job or other income you have; it must, by it self, produce more money than it consumes. That is the meaning of positive gearing.

    You can make a negative geared property look like a profit when off-set against wages etc. This is very common, but is contray to the financial freedom message of positive gearing. Hope that helps (:

    Chris

    Profile photo of annaw2annaw2
    Participant
    @annaw2
    Join Date: 2003
    Post Count: 178

    Hi Steve,

    Our accountant claims for all of the above. We have a wide enough margin on most properties that they are still cfp after taking such costs into account.

    Anna

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    Hi Steve,

    All the expenses you mentioned are tax deduxtable yearly….

    Sue [:)]

    “Be careful not to step on the flowers when you’re reaching for the stars”

    Profile photo of shaunwalkershaunwalker
    Member
    @shaunwalker
    Join Date: 2003
    Post Count: 403

    I have a negative geared but pos cashflow property. I put in a 221D with the help of an accountant to the tax man to get my tax back now not yearly.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    As a guide, any expense incurred in making a profit would be tax deductible. So virtually any legetimate expense related to keeping your property in good working order would be claimable. Don’t forget travel expenses- to property for inpsections, meetings, accountants, loans etc. This can really add up.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

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