The biggest trap with LOC is that people use them for investment purposes and use them to pay personal expenses. A LOC should be set up to have all your rent paid into that account and then all your IP's outgoings  paid from that account. No personal expense should be paid from the LOC because the tax department will crucify you.

I disagree with your accountant on the depreciation. One of my properties was built in 1971 and we still obtain very good depreciation on the fixtures. Its only a nedium size 3 x 1home. No building depreciation though.

Contact Depro and for about $400 you will be pleasantly surprised how much you can claim. You can also back claim if you have…[Read more]

For a very good accountant in Perth I use Gogas and Associates. Theo Gogas can be contacted on 93153947.

He is very good with property investments and he invests in property himself