To maximise financial gain from an investment property the right accounting and tax advice is essential.
We work with a team of Victoria's best Chartered Accountants at Owen & Peach.
For taxation purposes you need to buy the property in the right entity and you also need to make sure the loan is in the right name(s) to protect the deductibility of the mortgage interest. In the process you should also understand how capital gains tax works and if you are buying off the plan you also need to understand the tax benefits associated with depreciation and the building allowance. Our accountants will take these stresses away from you, as they are a highly capable team who are experts in their field.
Creating wealth through purchasing an investment property is common practice in Australia. Statistics released by the Australian Tax Office suggest that more than 1.8 million individuals owned an investment property and two thirds of them recorded a tax loss in their personal tax return. Negative gearing is a very tax effective strategy, but the real benefits of negative gearing are only realised when you combine the correct tax and financial advice with the right property and loan product. You should always seek expert advice to make sure the purchase is within your budget and will provide taxation and financial benefits in the long run.
Owen & Peach Chartered Accountants Registration Number: 59064001
Through our association with a specialist accounting firm whose niche is accounting for investment properties you can access a range of services including:
Advice on the ownership structure – your name, joint names, self-managed superannuation fund etc.
Advice on the taxation aspects of investment property ownership including negative gearing, capital gains tax, building allowance and depreciation.
Advice regarding what you can claim as a tax deduction and the areas you need to be wary of including initial repairs, the distinction between a repair and an improvement plus the rules regarding property ownership in a SMSF
Using an intelligent software tool they can prepare a 10 year cash flow analysis on the property including taxable income forecasts and equity projections.
A tax loss on the property implies a negative cash flow and rather than wait until the end of the year to claim the tax benefits they can prepare a PAYG variation application so that you receive the tax saving with your regular pay packet.
Preparation of the rental property schedule and all tax returns