With tax time upon us, it’s important to understand what you can claim in order to get the full deductions you are entitled to in regards to your investment property.
Here is a list of items you can potentially claim as deductions on your tax return:
- advertising for tenants
- agent fees and commissions for property management
- body corporate fees for units and townhouses
- repairs and maintenance
- cost of travel to inspect the property or undertake maintenance
- interest and bank charges on rental and expense accounts as well as finance
- gardening and landscaping
- land tax
- mortgage insurance
- council rates and levies
- accountancy fees
The cost of engaging a Quantity Surveyor to provide a Capital and Depreciation Report, which will enable you to claim depreciation and capital allowance deductions for your investment property, is also deductible. This Quantity Surveyor’s Report can be utilised to amend previous years tax returns as well, should you have not claimed depreciation and building write-off in those returns.
It’s important to keep organised records and receipts in order to have all the information you need close at hand when required. Your local finance professional can best advise you of exactly which deductions are applicable to your investment property.