The tax implications of purchasing additional properties or of renting property can sometimes be confusing. There are two principal taxes that must be considered: capital gains tax and income tax. Income tax is payable on the net income from a rental property.
The way in which property is purchased, and what occurs at the time of purchase, can mean a difference of $1000's of dollars each year in tax refunds on the same property. It can pay for itself many times over by having an accountant who is experienced in dealing with rental properties.
In order to maximize the return on a rental property it is often necessary to restructure your affairs. We can give advice on the structure that is right for you.