The Australian Taxation Office (ATO) produces may publications and it pays to stay in touch to keep tabs on what taxation and rental property laws are changing.
A publication called Rental Properties 2010 details rental income and also expenses, how to account for depreciation and other tax-deductible costs associated with property investments. for more information visit their site at http://www.ato.gov.au
Need we say that if you do own an investment property it is important that you do seek advice from experience property consultants and that you do not lean on your friend’s advice, even though they may have had investment properties for some time.
A very expensive mistake a property investor can make is to listen to inexperienced or unqualified sources. The intricacies of taxation and property investment are a very personal situation as each investor has their own income and taxation scale that has to be addressed. Ensure that you get advice on your taxation before lunging into buying an investment property so that you can set yourself up in the best way to take advantage of the investment and taxation.
You may be able to cope with some negative gearing which will give you a good tax refund, but this should only be done if it is easily managed financially.
If the property you are looking at needs repairs or an upgrade, check out what can be tax deducted and what cannot.
Using the services of a Quantity Surveyor will help monitor those expenses and any costs that you may incur with their services would be well looked after in the monitoring of costs for any upgrade.