Rental property tax

These 10 tax strategies apply to rental property investors produce the biggest tax savings (on average).

  1. Family trusts - Provides asset protection, income splitting, 50% CGT discount & flexibility.
  2. Refinancing the family home - Ideal when renting the ‘old’ family home.
  3. Negatively gearing the family home - Asset protection, capital growth & tax savings.
  4. Holiday homes - lifestyle investment.
  5. Property depreciation reports - Produces average deductions of $8,000 per property.
  6. Self-managed super fund borrowings - Negatively gear property in the most tax effective investment vehicle (0, 10 or 15% tax rates).
  7. Interest deductions for rental properties - Largest deduction that is under claimed by 80%.'
  8. Salary packaging rental property expenses to double dip & save the GST - double the deductions for rental property assets costing less than $300 each.
  9. Negative gearing - 2 million taxpayers negatively gear rental properties.
  10. Salary packaging rental property losses to ‘beat’ the income test rules - reduce child support payments & the 15% division 293 tax payable.