Rental property has various benefits. It can be a steady source of income or it can be utilised as a profit opportunity. Many businesses, individuals and trusts (unit and discretionary) own and maintain rental properties.

Taxes are applicable on individuals that own these real estates and can be incurred in the following forms.

• Top marginal tax rates have to be paid if income is earned from the property.

• Net rental loss of other incomes can be subtracted from the rental property.

• On the sale of rental property, the top marginal tax rate is paid on taxable gains. If you incurred a loss then there will be no tax.

• Taxable capital gain is capital gain after exemption.

• Net income equals rental income – expenses in addition to depreciation.

• A benefit of owning rental properties is that the depreciation can be claimed as a building cost deduction. It is not a cash expense and you will end up saving a marginal tax rate of depreciation per year according to your taxable income. The top marginal rates vary from 0% to 47%.

Additionally, if you have held a rental property for more than 1 year then you will receive a tax benefit of 50% discount on capital gains. This means that you will pay a mere 0%–23.5% tax.

We have been providing our services to rental property owners for quite a while now and have vast experience in this matter. We not only guide about the taxation structure rather we also work out the property ownership to claim all the rental expenses according to the act.

Our services include:

• Net income calculation to decide whether to buy a property or not.

• We structure rental property according to your choice as a discretionary family trust, unit trust, as a company and for personal uses.

• We provide advice regarding the sale of the property. Getting advice is beneficial because your taxable income can fluctuate.

• We also calculate capital serial number dan authorization code sketchup pro 2018 gains and work out if there are any exemptions that you can benefit from.

• Decision on depreciation report.