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Owning Investment Property: Depreciation and Negative Gearing


Capital gains taxes may hurt your returns on an asset based investment such as property. While this is the case there are some important tax claims that can be made to help balance those books and improve returns.

Effective record keeping, such as related receipts for costs associated with your investment property, may allow you make claims for depreciation. Depreciation allows you to claim a small percentage of the depreciating assets cost annually. The rate depends upon the depreciation rate of the item. For example if you have a fully furnished home as a rental property, you may have bought a couch for future tenants to use and increase the amenity value for marketing of the property. This couch as an asset will decline in value, which has an attached guideline to utilise depending on your tax threshold.

Negative gearing offers further options for claiming on your tax return. Negative gearing generally allows a claim to be made base upon the difference between your rental income from an investment property and the related expenses of holding this property (for example your mortgage and real estate management).

Feel free to call and have a chat to us about more details, and how we will make use of this in your tax claims be it for an individual, trust or alike.

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The Great Bean Counters are Registered Tax Accountants offering accounting services to Brisbane’s Western Suburbs including but not limited to: Moggill, Chapel HillKenmore, Fig Tree Pocket, Indooroopilly, Upper Brookfield, Brookfield, Pullenvale, Pinjarra Hills, Bellbowrie, Anstead, Mount Crosby, Kholo, Kenmore HillsKarana Downs, Toowong and Middle Park.

We are a Brisbane based accounting firm.

*Liability limited by scheme approved under Professional Legislation

 ABN: 19 617 763 836