Don’t use your investment property just to earn an income. Take advantage of the tax deductions which you can claim for expenses incurred for the period your property is rented or is genuinely available for rent.
Rental expenses you can claim now
- Marketing costs advertising for a tenant
- Council rates and water charges
- Cleaning and gardening
- Repairs and maintenance
- Body corporate fees
- Insurances including building, contents and landlord insurance
- Property management fees and commissions
- Interest on any loans used to purchase a rental property
- Net rental losses against negatively geared property
Rental expenses you can claim over several years
- Borrowing expenses such as loan establishment fees, lender’s mortgage insurance, mortgage broker fees, stamp duty etc
- Capital works such as construction improvements and extensions and building costs
- Depreciating assets which are items that are not part of the structure of the building e.g. flooring, window coverings and appliances such as washing machines
- Initial repairs which were incurred at the time the property was acquired
The list goes on so speak to your accountant to fully maximise the benefits of owning an investment property, or refer to the ATO website here.
