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Tax Deductions for Property Investors

Tax Deductions for Property Investors

Just bought a new investment property or contemplating the purchase of an investment property, but are confused by the tax maze of possible deductions which apply?

Here's a handy summary to guide you along!

Deductible Expenses

  • Advertising
  • Body Corporate Fees
  • Borrowing Expenses (to be amortised over up to 5 years if over $100)
  • Cleaning
  • Council Rates
  • Depreciation
  • Gardening & Lawn Mowing
  • Insurance
  • Interest on Loans
  • Land Tax
  • Legal Fees
  • Pest Control
  • Property Agent Fees & Commissions
  • Repairs & Maintenance
  • Stationery, Telephone & Postage
  • Travel Expenses (This deduction is no longer available for trips made from 1 July 2017 onwards)
  • Utilities which are not paid by tenants

Non-Deductible Expenses

  • Pre-Purchase Expenses eg. travel to inspect property prior to purchase, cost of inspection reports prior to purchase, sourcing fee, etc.
  • Expenses incurred during periods when the property was not available for rent eg. during periods of personal use including use as holiday accommodation
  • Certain outgoings which form part of the cost base of a property if subsequently sold, for capital gains tax purposes. Eg. stamp duties, capital expenditure on improvements to the property, legal fees incurred for the acquisition and sale of the property, fees paid to buyer's advocate, auctioneer's fees, etc.
  • Interest expenses where a portion of the loan was used to fund relating to purchases for private use, such as a boat.

Prefer to speak to someone about possible deductions? Contact Fortiz Accountants to make an appointment to discuss taxes relating to your property investments or suitable structures for future purchases.