Rental Property and Taxation

Don't leave the success of your investment up to a visit to your accountant once a year -- this book could save you hundreds! In print for over 10 years, Rental Property and Taxation debunks the many myths surrounding tax and real estate investment, and takes an objective look at how a loss from a rental property can affect your tax situation. In this fully updated fourth edition, practising accountant Tony Compton arms rental property owners and would-be owners with the information they need to be better informed about tax as it relates to their own circumstances. It covers all aspects of rental property ownership, including: allowable deductions decline in value and construction cost write-offs negative and positive gearing record keeping structures and ownership, and more! With its plain-English explanations, real-life case studies and the latest updates to tax laws, Rental Property and Taxation will take the 'buy now and hope for the best' factor out of tax planning for rental property investments.

Don't leave the success of yourinvestment up to a visit to youraccountant once a year -- this bookcould save you hundreds!In print for over 10 years, Rental Property and Taxationdebunks the many myths surrounding tax and real estate investmentand takes an objective look at how a loss from a rental propertycan affect your tax situation.In this fully updated fourth edition, practising accountant TonyCompton arms rental property owners and would-be owners with theinformation they need to be better informed about tax as it relatesto their own circumstances. It covers all aspects of rentalproperty ownership, including:* allowable deductions* decline in value and construction cost write-offs* negative and positive gearing* record keeping* structures and ownership, and more!With its plain-English explanations, real-life case studies andthe latest updates to tax laws, Rental Property and Taxationwill take the 'buy now and hope for the best' factor out of taxplanning for rental property investments.

Preface v1 The purchase 12 The tax return 93 Variations of tax instalment deductions 254 The sale 295 The goods and services tax 336 Capital gains tax and rental properties 377 Decline in value revisited 498 Construction cost write-off 719 Interest 7310 Interest-only loans: a strategy 7911 Split loans 8112 Negative gearing 8513 Positive gearing 9314 Repairs and maintenance 9715 A letter to an agent 10516 Other tax matters 11317 Losses on rental property 12118 Structures and ownership 13319 Hybrid trusts 13720 Record keeping 14321 Preparing your tax return 15122 Technical matters 15723 Land tax 179Conclusion 185Appendix A: Deduction checklist 187Appendix B: Pro forma agent's statement summary 190Appendix C: Pro forma agent's rental statement 191Appendix D: Pro forma decline in value schedule 192Appendix E: After-tax cost of interest 193Index 195