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Let’s be honest: no one buys an investment property because they love doing tax returns.
But if you’re serious about building wealth through real estate, you need to play the tax game—and play it well.
Because here’s the truth: a smart tax strategy can mean the difference between scraping by with low cash flow... or having your investment pay you back year after year.
So whether you’ve just settled on your first property, or you’re adding to an already growing portfolio—here are a few tax truths that could save you thousands.
If you’re still using a shoebox full of receipts or forgetting which expenses belong to which property... you’re leaving money on the table.
Start treating your property portfolio like a business:
Log every cent spent on maintenance, management, and marketing
Keep digital copies of invoices and rental statements
Separate bank accounts = less headaches at tax time
You don’t get to claim what you can’t prove. The ATO’s watching—so do yourself a favour and keep it clean.
It’s not just about the mortgage interest (although yes—you should be claiming that too). There’s a stack of legitimate expenses you can write off each year:
✔ Council rates
✔ Landlord insurance
✔ Property management fees
✔ Repairs (but not renovations)
✔ Loan interest
✔ Travel costs to inspect your interstate property (if eligible)
Just make sure the property is genuinely available for rent. No, a family holiday at your Airbnb doesn’t count.
Most investors miss this.
If your property was built after 1987 or has new appliances, flooring, or fittings—you might be sitting on thousands in depreciation deductions.
Get a quantity surveyor to create a depreciation schedule. It's a once-off report, but it can lower your taxable income for years.
Translation? More money stays with you, less goes to the taxman.
Eventually, you’ll sell. And when you do, the ATO wants its cut of the profits (aka Capital Gains Tax).
But there are ways to reduce the sting:
Hold the property for more than 12 months? You could be eligible for a 50% CGT discount.
Keep every record: purchase costs, legal fees, renos, sale expenses.
Structure matters—selling in your name vs a trust vs a company all has tax implications.
Future-you will thank you for thinking ahead.
They’re cracking down on dodgy claims and fake deductions. Some of the biggest red flags?
🚩 Claiming deductions for periods when the property wasn’t rented
🚩 Overstating renovation costs
🚩 Making up rental losses through "wash sales"
If it feels shady, don’t do it. It’s not worth the audit.
Final word?
Tax isn’t just a chore—it’s a lever. And when used well, it can massively improve your returns.
At futurx, we help our clients make data-backed decisions. That means not just where to buy, but how to structure their investments for long-term success—including tax efficiency.
Want a team that looks at the full picture?
Link: https://calendly.com/sud-futurx/15minutes
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