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Structuring options for investment properties

  There are different ways investors can structure their investment property for tax purposes. Some of the structure options include: Individual or partnerships Investing as part of a partnership is usually treated for tax purposes as a collection of individuals. One of the advantages of owning property as an individual, particularly if the investment is negatively geared, is that any tax losses can be applied at the individual's level against all of the individual’s other forms of assessable income, such as salary, wages and revenues from other business activities. Alternatively, the losses can be carried forward and applied against income from future years. However, once the property starts to generating positive returns, income tax will be payable by the individual at their applicable marginal tax rate. Investing as an individual also does not provide investors with any form of asset protection from creditors or in the event of family break-ups. Discretionary trusts One of the m