Landlord rental deductions jump
Rental losses reported by landlords jumped 25 per cent in 2006 to a record $5 billion while rising rates and property values drove tax-deductible interest costs up more than 14 per cent. Deductions for interest paid on rental property grew by $1.7 billion to $13.8 billion while 66.5 per cent of landlords are claiming losses on their rental properties according to the Australian Tax Office. The increase in deductions by landlords was outpaced by net capital gains growth of 30 per cent reported by individual investors who also saw a 14 per cent rise in dividend income and tax credits on dividends.
Source: The Australian Financial Review