Evaluate cash flow, capital growth and tax implications of property investments
Investment Portfolio Management
Investment Information Input
Property Information
Loan Information
Operating Expenses
Personal Tax Information
Investment Assumptions
Investment Analysis Report
Investment Overview
Total Initial Investment-
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Expected Holding Period-
Expected Property Value at Sale-
Gross Rental Yield-
Net Rental Yield-
Investment Return Analysis
Total Capital Growth-
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Total Rental Income-
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Total Tax Benefits-
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Total After-Tax Return-
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Internal Rate of Return (IRR)-
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Tax Summary
Total Tax Deductions-
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Capital Gains Tax Payable-
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CGT 50% Discount Applied-
Selling Time Recommendations
Annual Cash Flow Analysis Chart
Tax Benefits Detailed Analysis
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Total Tax Benefits Amount
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Benefit Years: -Marginal Tax Rate: -
Australian Property Investment Tax Mechanism
1. Negative Gearing
When the deductible expenses of a property investment exceed rental income, the resulting loss can be offset against the investor's other taxable income, thereby reducing overall tax liability.
Applies to all types of investment properties
Loss amount calculated as tax benefit at investor's marginal tax rate
Unused losses can be carried forward across tax years
2. Main Deductible Expenses
Loan Interest:Interest portion of investment property loans
Property Management Fees:Apartment strata fees, etc.
Council Fees:Council rates, water rates, etc.
Insurance:Landlord insurance premiums
Maintenance:Repair and maintenance costs
Agent Fees:Rental management fees
Depreciation:Building and equipment depreciation
3. Depreciation Calculation
Division 43:Building structure depreciation, 2.5%/year for new buildings, 40 years
Division 40:Equipment depreciation, such as air conditioning, carpets, etc.
Only properties built after 1987 can claim building depreciation
4. Tax Rate Impact
Tax Benefit Amount = Loss Amount Γ Marginal Tax Rate