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There are some major tax advantages when it comes to investment property which excites most of the residents. Real estate and investment properties have some of the unique tax benefits. That doesn’t come along with other kinds of investment. With investment in property over suburbs around Queensland, you can easily minimize your tax. And it will open many doors to maximize the return on investment that you get. Now, here are five property tax advantages.

Capital Gains Tax Exemptions

Although it can sometimes be only applied to the principal place of residence. Because it’s a home that you own, one can get exemptions from the capital gains tax. It also means once they sell their property, they’ve already gained a lot of money through the property’s growth. That ultimately results in no need to pay tax on that gain!

But it can’t be something you can scale out or use across your entire property portfolio. The capital gains tax exemption is limited to one property that must be the principal place of residence.


Depreciation is the reduction of the value of an asset over time. Having your investment property depreciated aligns with the value of your property lowering. It is a good tax advantage because it’s not money that is being spent out of your pocket every year!

One can claim the lowering value of the construction of property. And the things inside of it, against the value that is coming into your account in that financial year. The benefits of depreciation can turn a negatively geared property into a positively geared property. After one gets their tax refund it also helps in making the property effectively almost tax-free.

Interest on Mortgage

Interest is a cost incurred in making money through property, which later becomes a tax-deductible expense. Many investors have an interest-only loan on their investment property, and they’re getting maximum tax deductions all the time.

Withdrawals from Equity Loan

One doesn’t need to pay tax on money that they withdraw through an equity loan. What this adds up to is, that if their property goes up in value. If they don’t want to sell their property, they can get a loan from the bank!

Negative Gearing

The benefit we have here in Australia is that any money that once lost in their investment property. The same one is able to claim against the tax they’ve paid through their employment. For every dollar they earn they get some tax back, which means they’re losing less money. Therefore they need less growth in the invested property to make a profit.


This information is for general informational purposes only and is not intended as professional advice. While we strive to present accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content provided.

Real estate transactions and financial decisions involve complex considerations that may vary based on individual circumstances. Do not consider the content provided as a substitute for professional advice tailored to your specific situation.

Conducting thorough research and consulting with licenced and experienced professionals in the relevant fields is crucial. Every individual’s financial and real estate situation is unique, and professional advice is essential to making informed decisions.

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