Gotsis Rubic & Barbariol specialise in property investment; therefore, we understand the property investment tax ramifications and complications. As specialists in the field, we offer you expert advice as we have provided for many of our current property investor clientele.
The ATO will maintain a focus on these expenditures in the rental statement:
- Interest Deductions: You can only deduct interest on the part of the investment loan that relates to the investment property. Additionally, the interest deduction only relates to the months that the property was available to rent.
- Maintenance Deductions: Restorations, renovations, and additions made to investment properties are considered depreciable expenses and are not considered as deductions from income. However, these types of expenditure are taken into account when calculating Capital Gain.
- Financing Expenditures: Fees paid to promoters and providers of properties and financing options are not necessarily income deductions. However, these may be treated as capital expenditures or borrowing expenses.
- Depreciable Allowance: The developer or quantity surveyor will need to supply you with the proper depreciation documentation from, in order to claim the 2.5% of the building cost.
