The purchase of an investment property will be one of the biggest decisions of your life, both emotionally & monetary. Once purchased you can maximise your claim and get the most out of tax deductions.

It is therefore imperative that you get it right!

There are so many factors to consider from location, the price you pay, the finance side of things, the structure to purchase in, the investment property manager, the taxation consequences and the list goes on! Unless you are an expert in each of these areas, it is important to surround yourself with the best professionals in every one of these fields.

Generally, the owner of a property (known as the landlord) is assessable for income tax on all income received but may also claim tax deductions for losses and outgoings incurred in gaining that income. This is where our list of possible property tax deductions you can claim on your investment property and in the long run,  being aware can save thousands on your tax return. 

The following is a checklist of some of the common types of expenses which a landlord may generally claim as a tax deduction:

  • Advertising & promotion
  • Agent’s commission for collection of the rent
  • Audit/Accountancy Fees
  • Bank charges and finance charges
  • Borrowing & mortgage discharge costs
  • Building write-off allowance
  • Cleaning
  • Depreciation on furniture & fittings
  • Gardening
  • Insurance premiums
  • Interest on monies borrowed to purchase the property
  • Lease incentives
  • Lease preparation, registration & stamping
  • Legal costs, in recovering arrears of rental, evicting defaulting tenants, investigating credit worthiness & preparing leases
  • Management/Body Corporate fees
  • Postage
  • Power supplied (gas & electricity)
  • Rates – Council, Water & Land Tax
  • Repairs & Maintenance
  • Safe deposit box fees to hold title documents
  • Secretarial & bookkeeping fees
  • Servicing expenses
  • Stationery
  • Tax advice costs & tax return preparation
  • Telephone

These are examples of many expenses incurred by a landlord which are allowable as deductions but are not limited to the above. if you would like to know how many of those tax deductions relate to you, so you claim them for your investment property, contact us today by sending us an email, or via phoning on 03 9888 3175

Financially Sorted Tip

“It is very important that you are fully aware of the tax deductions available to you as a property owner. This will help you to legally minimise your taxation liability and receipts should always be maintained (for a minimum of 5 years) to enable you to maximise any possible tax deductions.