Tax returns for property investors in Sydney
Tax Returns for rental property investors
Why ABAS Accountant for Tax Returns in Sydney?
As Australia’s leading property taxation experts, we keep on top of every single tax concession affecting investments like yours – so you can relax, knowing your tax is in safe hands.
A team of specialist accountants can work with you to deliver the optimal return on your property investments. Incurred taxes, such as income tax, capital gains tax, property tax and land tax, will be assessed in conjunction with available deductions, including acquisition and maintenance costs, depreciation allowances and negative gearing.
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Rental and Investment Property Tax FAQ
Most frequent questions and answers about rental property
If you’re a company, you’re not entitled to any capital gains tax discount and you’ll pay 30% tax on any net capital gains. Company may also be eligible for 27.5% discount on capital gains (conditions apply). If you’re an individual, the rate paid is the same as your income tax rate for that year. If you have held the property for more than year you are eligible for 50% discount on capital gains. For SMSF, the tax rate is 15% and the discount is 33.3% (rather than 50% for individuals).
If it is your prime resident and you have lived in it for more than one year you don’t need to pay capital gain tax. Other conditions apply
You have to live in your property for at at least 12 months before you can treat it as a prime resident property.
The key benefit of negative gearing is that any net rental loss you incur during the financial year may be offset against other income you earn, such as your salary. This reduces your taxable income and how much tax you have to pay.
If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, land tax, operating expenses, council rates, body corporate rates, borrowing expenses, depreciation, and repairs. This may result in net loss in property which will offset your other income. Hence this will result in higher tax refund or less tax payable on other income.
This is called positive geared property which means you have a net rental profilt after deducting all the expenses from the rent and hence it adds to your other income which may result in a tax payble or it may reduce tax refund.
The capital loss from selling an investment property can not be offset against any ordinary income such as PAYG income, interest income, dividends, business income etc . It can only be offset against other capital gains. If there is no other capital gains in same financeial year then the capital loss may be rolled over and offset against any capital gain in future years.
No. After 1st July 2017 you can not claim travel expenses to the rental property as an expense.
Yes you can offset any capital gain against any other capital loss from another instrument. You could even offset capital gains in a financial year from rolled over capital losses from prior years.
Note: All the contents on this page is general information only. It is advised to consult with registered tax agent before making any decision as capital gain tax can be complex.