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6 things you can claim to maximise your tax savings

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Your Investment Property | 02 Aug 2012, 12:00 AM Agree 0
Every dollar you can claim on an investment property will benefit your financial well being. With this in mind, Eddie Chung explains what you can and cannot claim on negatively geared investments
  • Cathy | 03 Aug 2012, 11:49 AM Agree 0
    I love your valuable information Eddy. I recently settled on my second investment property just before the end of the financial year. The agent already had a tenant which the developer allowed before certificate of occupancy and hence settlement occurred. I would like to know how I calculate daily interest which is 5 days I am able to claim for the previous financial year. I presume I can also claim the deposit as well but I need to know how I would calculate that interest. Many thanks
  • Ava Clemes | 20 Aug 2015, 04:19 PM Agree 0
    Nice Article on tax benefits with depreciation on own property
  • NM | 09 Jan 2016, 02:09 PM Agree 0
    I have a question - can you negative gear if you have offset and redraw facility on that home loan?
  • Mark K | 21 Jul 2016, 12:05 PM Agree 0
    Thank you for the informative article. I wish to comment about para 4, in section 5. 'Capital works', in which you state: "For capital works you incurred on a new building, you need to exclude the builder's profit margin in calculating the construction expenditure amount that you base the capital works deduction on". My comment is that the ATO publication 'Rental Properties 2015' (being the current relevant publication, as far as I can assertain) states, under the heading 'Construction expenditure that can be claimed', p22: "Construction expenditure is the actual cost of constructing the building or extension. A deduction is allowed for expenditure incurred in the construction of the building if you contract a builder to construct the building on your land. This includes the component of your payments that represents the profit made by individual tradespeople, builders and architects."

    It would seem that your statement refers only to rental properties built by a speculative builder. Would you care to comment, given that people who have built a rental property from their own plans may be entitled to a significant, legitimate deduction? Thank, Mark
    • Washington Brown | 20 Nov 2017, 03:02 PM Agree 0
      Hi Mark,

      If you engage the builder directly, the builder profit will form part of the construction cost. It's where you buy off a developer that the developers profit gets excluded.


  • Izzy | 05 Sep 2017, 07:51 PM Agree 0
    This is actually a really useful article - and it’s got some really great advice! I’ll definitely be utilising this! However I do actually have another quick question if anyone is able to answer it? Basically I’m currently looking into getting into property invetsment and I was reading an article the other day and it says that you can reduce your tax when investing in property? I believe it’s something to do with the SDLT? Is anyone able to confirm/tell me a bit more about this? It would be a big help as I’m still struggling to get my head around this whole thing, and I want to make sure I’ve got a good idea of everything before I take the leap! Thanks everyone!
    • Andy | 04 Mar 2018, 04:00 AM Agree 0
      If you can't tell me exactly what the role or how to find a list of the following professionals/ services are and how they relate to your investment strategy (If you even have on yet), you are not ready.
      Accountants (investment background) , conveyancing, quantity surveyors, buyers agent, property manager, mortgage brokers (investment background), lenders, financial advisors, building inspectors, builders/ developers, real estate agents and some form of related software to keep track.
      You can always wing it with less education but even a fool in the last 20 years should have made money in melb/ Syd and can brag about how "smart" they've been.
  • SK | 18 Nov 2017, 07:53 PM Agree 0
    Hi, we are renovating our investment property such as (painting, changing tiles, changing water hearter, adding 9kw aircon, changing fence, internal lights etc.). Can i claim anything in tax ? anywebsite to calculate depreciation rate for what we have added?
    • Washington Brown | 20 Nov 2017, 02:59 PM Agree 0
      Hi SK,

      We, Washington Brown, did create a depreciation renovation calculator that might help you.


      Tyron Hyde
  • Sally | 01 Jul 2018, 01:15 PM Agree 0
    Hi, thank you for your helpful article. I am wondering whether I can claim the cost of a storage container in my tax? I rented my property out as a fully furnished house but when the lease ended and the new tenants moved in they wanted the house to be empty, as such I purchased a shipping container to house the items. I intend to re-lease it as a fully furnished house again once this current tenancy expires, but am unsure whether I can claim these costs. Thanks, Sally.
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