Rental Property and Taxation: An Australian Investor's Guide, 4th Edition


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.

Tony Compton holds a Bachelor of Commerce and Administration from the Victoria University of Wellington, and is an Associate of the Institute of Chartered Accountants in Australia. His accountancy practice is located in Springwood, just south of Brisbane.
Preface v

1 The purchase 1

2 The tax return 9

3 Variations of tax instalment deductions 25

4 The sale 29

5 The goods and services tax 33

6 Capital gains tax and rental properties 37

7 Decline in value revisited 49

8 Construction cost write-off 71

9 Interest 73

10 Interest-only loans: a strategy 79

11 Split loans 81

12 Negative gearing 85

13 Positive gearing 93

14 Repairs and maintenance 97

15 A letter to an agent 105

16 Other tax matters 113

17 Losses on rental property 121

18 Structures and ownership 133

19 Hybrid trusts 137

20 Record keeping 143

21 Preparing your tax return 151

22 Technical matters 157

23 Land tax 179

Conclusion 185

Appendix A: Deduction checklist 187

Appendix B: Pro forma agent's statement summary 190

Appendix C: Pro forma agent's rental statement 191

Appendix D: Pro forma decline in value schedule 192

Appendix E: After-tax cost of interest 193

Index 195