With the end of the financial year approaching, now is the time to start getting your records in order to maximise your investment property related deductions.

So, what are you able to claim as a property investor?

The ATO advises the following are expenses you may be entitled to claim as deductions. Make sure you speak to your accountant and/ or make your own enquiries to ascertain what may be applicable to your individual situation.*

  1. Advertising Costs – to advertise for a tenant
  2. Body Corporate Fees – these are commonly paid quarterly and cover the running costs of the building
  3. Cleaning and Gardening costs
  4. Insurances – building, landlord
  5. Interest Expenses – interest on a loan to purchase, build, improve or repair an investment property may be deductible
  6. Land Tax, Rates & Water costs
  7. Legal Expenses
  8. Property Agent’s fees
  9. Repairs and Maintenance costs – repairs are deductible when “repairing” means to restore (or replace) the item to the condition it was in before it deteriorated.

You may also be able to include depreciation, which is essentially a deduction for the cost of assets itemised in the Depreciation Schedule. It’s something frequently overlooked by property investors, but can provide significant tax deductions particularly if your property is new or has been recently renovated. If you don’t have a Depreciation Schedule for your rental property, arrange it now! There’s still time before the end of the financial year.

At the beginning of July, your property manager should provide you with a summary of all rental income received and any expenses that have been paid through the agency.

However, if you pay some of the expenses yourself, or you self-manage your properties, start getting your records in order now. That way, you’ll be in a good position to lodge your return as soon as the financial year is over, and hopefully(!) receive your tax refund sooner.

*Please note The Landlords’ Club is not providing tax or financial advice and you should not act solely on the basis of the information presented here. The information is provided as a helpful guide to investors for their private information only. Every effort is made to ensure the contents are accurate at the time of publication. The Landlords’ Club takes no responsibility for any subsequent action that may arise from the use of this information. For specific information on deductions that may, or may not, apply to your personal situation, please see www.ato.gov.au or speak to your accountant.

About The Author

Kathryn De Luca

Kathryn has a background in accounting and finance, but being a property investor herself, she helped to create The Landlords’ Club in 2010 to provide property investors with a level of service they weren’t used to. She is always looking for ways to improve things, but most importantly the way The Landlords’ Club supports its Landlord members. Visit The Landlords' Club website at www.thelandlordsclub.com.au

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