Essential Property Deductions All Investors Should Know About

Thousands of people incorrectly (and unknowingly) claim tax deductions each year. Considering the proliferation of negative gearing in property investment, it is especially crucial to know what deductions you can claim for. Here we look at several rental property deductions you can rightfully claim for.

Loan Interest

You might be able to claim instantly for interest incurred on loans used to buy properties, land on which to build properties, or items that serve the property (appliances etc.).

Depreciating Property Assets

Certain assets can be written off on tax that can add value to a property but depreciate individually, such as televisions and microwaves. Construction or renovation costs, however, do not qualify in this category. Depreciating property assets can also be claimed in the long term as they decline in value.

Property Maintenance Costs

Running repairs and maintenance costs can be claimed back on tax.

Tenant Costs

Costs stemming from tenant activity, such as lease agreements or eviction costs, can be claimed straightaway.

Renovation Costs

Any construction or structural upgrades, both internal and external, can qualify as capital works deductions.

Stamp Duty and Other Fees

Borrowing costs can be deducted over the course of the loan period. This includes things like mortgage stamp duty and loan establishment fees.

When submitting your tax returns, be sure to read ATO conditions thoroughly or seek the advice of qualified professionals in property and finance.

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