are +geared properties tax deductible

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

stevefazak
Member
@stevefazak
Join Date: 2003
Post Count: 35
November 11, 2003 - 1:18 am
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
ChrisHall
Participant
@chrishall
Join Date: 2003
Post Count: 21
November 11, 2003 - 1:34 am
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
annaw2
Participant
@annaw2
Join Date: 2003
Post Count: 178
November 11, 2003 - 1:36 am
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
diclem
Member
@diclem
Join Date: 2003
Post Count: 537
November 11, 2003 - 1:40 am
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”
shaunwalker
Member
@shaunwalker
Join Date: 2003
Post Count: 403
November 11, 2003 - 2:01 am
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.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 11, 2003 - 3:33 am
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
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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