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When you buy a property for investment purpose there are some costs involved which are tax deductable, such as rate and taxes.

There are two types of expenditures in the conveyancer's letter; one is the cost price of a property, mortgage registration, stamp duty, search and settlement fees and the legal fees (conveyancer fees). These are capital expenses and not deductible against rental income. The second expense is the pro rata amounts for council rates, body corporate fees and water rates. These expenditures are tax deductible against your rental income.

When purchasing a rental property many of us borrow a significant amount from a financial institution. We have to pay some amount for loan application and legal fees. These expenses are also tax deductible. The rent which we receive from our tenants is included as an income.

The expenses marked with double asterisk **needs more explanation. So for more information on them please contact us.