Income Tax on Investment Property Rentals
When looking at investing in property there are three components that will be looked at in terms of income tax implications and your tax return:
•Tax Deductions prior to the property becoming income producing
•Rental Schedule when property is income producing
•Capital Gains Tax (CGT) Schedule when property is disposed of
Deductions prior to the property becoming income producing
The only deductions a property investor can claim for prior to the property becoming income producing is Interest, so long as the intent is that the property is to be used for income producing purposes.
Rental Schedule when property is income producing
Rental Schedule detailing all income and expenses either paid for or received per property during the financial year.
Capital Gains Tax (CGT) Schedule when property is disposed of
CGT schedule on disposal detailing your purchasing and selling costs not otherwise deductible during ownership.