Investment Property Deductions

What expenses can I claim for my investment property? Is a question we get asked all the time, so here are the most deductible expenses:

• Advertising for tenants
• Bank charges
• Bank Loan Fees (Can be claimed over 5 years)
• Body corporate fees
• Cleaning
• Council rates
• Electricity and gas
• Gardening and lawn mowing
• In-house audio/video service charges
• Insurance – building, contents, public liability
• Interest on loans
• Land tax
• Legal expenses (Only related to managing the property. Legal fees on the purchase of the property are not claimable, they are capital in nature and are used to reduce your Capital Gains upon sale of the property).
• Lease costs – preparation, registration, stamp duty
• Mortgage discharge expenses
• Pest control
• Property agent’s fees and commissions
• Capital Works
• Quantity surveyor’s fees
• Repairs and maintenance (The ATO are focusing on these costs to ensure they care not capital in nature)
• Secretarial and bookkeeping fees
• Security patrol fees
• Servicing costs e.g. servicing a water system
• Stationery and postage
• Telephone calls and rental
• Tax-related expenses
• Water charges

Please note as from 1^st July 2017 Travel expenses can no longer be claimed as a tax deduction for an investment property.

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