Maximising your Tax Return – Claiming on your Investment Property

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Maximising your Tax Return – Claiming on your Investment Property

The end of the Financial Year is only a few weeks away. Time to start thinking about what deductions you can claim on your rental property.

Always get sound advice from accredited professionals to help you through the minefield of what can and can’t be claimed.

You will need to keep records right from the beginning of your investment journey if you invest in a rental property or rent out your current property.

Declare all your rental-related income in your tax return and work out what expenses you can claim as deductions.

So, what can you claim

  • Property Management Fees
  • Council & Water Rates
  • Insurances
  • Interest incurred on your loan
  • Maintenance & repairs expenses to the property
  • Advertising for tenants
  • Strata Fees
  • Building depreciation plus depreciation of fittings and fixtures like stoves, carpets and hot water heaters
  • Pest control and gardening
  • Phone costs, stationery and any travel costs to inspect the property

While this is not the full list of what you can claim and there may be deductions that you are not aware of – always discuss any possible deductions with your accountant or tax agent before lodging your tax return.

So, what can’t you claim

  • Utility bills that the tenant has paid
  • Any expenses associated with your personal use of the property
  • Borrowing costs
  • Any costs relating to the purchase or sale of an investment property

The end of the Financial Year in Australia is 30th June.