Top 10 Tax Strategies for Rental Property Investors

Top 10 Tax Strategies for Rental Property Investors

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.

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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2