Investor Mistakes: Not Knowing which expenses are deductible and how to maximise them

Not Knowing which expenses are deductible and how to maximise them

By Glynis Carter

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.

 
 

The tax rules around deductibility of expenses for rental investments can be quite gnarly and you do need to have a good knowledge of the tax legislation to make accurate assessments on these.

 

Making a mistake in this area can be costly and may cause you to upset your long-term holding strategy. Some expenditure can become “black hole expenditure” where it is neither deductible nor depreciable, which is definitely not the outcome that you want.

 

When you are calculating your rental investment profit/loss and cashflow needs, there are normal rental expenses that can be claimed such as described by Phil in his chapter on positive cashflow. However, some items affect...

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Investor Mistakes: Structuring the purchase of your rental properties the wrong way

Structuring the purchase of your rental properties the wrong way

By Glynis Carter

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.

Understandably when you purchase your first rental property you are trying to save as many administration costs as you can and reduce any unnecessary outlay.

Often when doing this you forget to look at the long-term strategy.

Long term strategy for purchasing rental investment properties is one that leads to more than one property purchase and often several.

Having the correct structure in place when you start is not only sensible but in the long run can save you money.

The costs for putting this in place are worth the end result.

Let’s take a look at the four possible structures you may have heard of:

1. Purchasing a property in your own name. (Sole Trader)

2. Purchasing a property in your own and another...

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