Introduction

20 Top Tax Tips for Property Investors: Property values, as history will tell us, always increase over time. Indeed, through all financial crises and economic difficulties Australia has faced, the one thing constant that continued to yield returns is property investment. If you’re not investing in property, you are seriously missing out. With proper research and smart property management, you can create a passive income and build sustainable wealth. This is why property investment is considered to be the surest way to create wealth.

Investing in property offers plenty of tax benefits, too. You can have tax deductions on your loan interest, property taxes, insurance, and more. Effective property tax planning ensures you get the full benefits and all the deductions you are entitled to. This guide will help you maximise returns from your investments by providing you with tips to minimise your taxes. But first, let’s talk about other factors that affect your property investment returns.

Investment Structure: 20 Top Tax Tips for Property Investors

There are four basic types of Investment Structures and getting the correct structure for your property investment right from the beginning can have long-term benefits.

Individual Investment Structure

The simplest way to hold a property investment is to have it under your name. Individual investment structure are easy to set-up and manage but have no flexibility in terms of income distribution. Using an individual investment structure also makes your asset vulnerable to claims from creditors. Negatively geared property held by an individual will also attract tax liabilities when it eventually becomes positively geared.