TAX RETURNS - CLAIMABLE ITEMS

Property investors must ensure their records are ‘in order’ to maximise deductions. A well-prepared tax return can significantly improve your cash flow and long-term returns.

Gather all income and expense records related to your investment property. These records include rental income, invoices, bank statements, loan documents, and receipts for repairs or improvements.

Ongoing Deductions – Claimable Immediately

• Advertising for tenants

• Bank fees on investment property accounts

• Body corporate or strata fees (Administrative fund only – special levies may be capital)

• Cleaning expenses

• Council rates

• Gardening and lawn mowing

• Insurance premiums (Landlord, building, contents, public liability)

• Legal expenses

• Loan interest

• Pest control

• Property management fees

• Repairs and maintenance

• Stationery, phone, and postage costs related to managing the property

• Tax-related expenses (E.g. Tax return preparation costs and accounting fees)

• Travel expenses (Note: Travel to inspect or maintain residential rental properties is generally not deductible for individuals from 1 July 2017 but may be allowed for corporate entities)

• Utilities & water charges (If paid by the landlord)

Depreciation and Capital Works Deductions – Claimable over time

• Depreciation of plant and equipment (E.g. carpets, blinds, appliances)

• Quantity Surveyor’s fees for preparing a depreciation schedule

Other Deductions

• Mortgage setup costs (Loan establishment fees and title search fees)

• Loan ongoing fees (E.g. Annual loan service fees)

• Interest on loans for renovations or capital improvements

We always recommend that you refer to your accountant or financial advisor prior to preparing your tax return.