The final outcome on your tax return when you have a rental property is dependent on your individual property circumstances as well as your other circumstances all combined – it is impossible for me to suggest a likely outcome in this forum simply because everyone is different…
But one tool you can use to increase your rental deductions is known as rental depreciation. A rental depreciation report must be prepared by a Quantity Surveyor (so please don’t ask me to do it for you…) and you should arrange one of these reports as soon as possible after the purchase of your rental property. Note: Real estate agents, property managers and valuers are unable to prepare this report either, it must be done by a quantity surveyor.
As your accountant, I will include this depreciation in calculating your tax income for the given year and I can vary your last two years of tax returns if you’d like to go back and claim retrospectively.
The cost of obtaining the report varies among service providers but at least it is tax deductible also!