What are the essential things that need to be done if you are purchasing a second property with the intention of earning rental income?

• If you have purchased a property for the purpose of investment the income earned will be subject to tax and you will be entitled to claim certain property related expenses as deductions such as:
  • interest costs;
  • running and maintenance expenses; and
  • depreciation expenses.
• The property itself is a capital asset and when sold or disposed of it will be taxable under the Capital Gains Tax (CGT) rules.
• At the purchase date it is important to retain all the purchase documents and documentation of other expenses as written evidence for your future tax affairs and to ensure that you have the necessary information for claiming the allowable deductions in the future.
• You can use our LegalPlan™ membership to ask lawyers for tenders or a Fixed Fee Quote in relation to your investment property needs.