5 Investment Property Tax Tips

A property investor has a variety of ways to minimise their annual tax bill, and these deductions are often the difference between a negative cash flow and a positive one.

Here are the five tips to take note if you are a property investor.

Rental advertising costs

If you market your property using online, print media, brochures and signs, you can claim these advertising expenses against your income in the same year that you paid for them

Land tax

As long as you have a rented dwelling on your investment property, you can use land tax as a deduction. However, the levy differs significantly between states; as does the timing of when you can claim the cost. Be sure to consult a tax advisor so you are claiming the correct amount in the right year.

Building depreciation

Depending on when your investment property was built, you may be able to claim a deduction on the depreciation of the building’s structure and any renovations you make to the property. Note that you can only claim deductions for the period in which the property was rented or available for rent.

Repairs and maintenance

You can claim repairs as an immediate deduction if they relate directly to wear and tear. Wear and tear may refer to replacing a few broken roof tiles after a storm or repairing an appliance. You can claim the costs of hiring a professional to make these repairs as an immediate deduction.

Insurance

You can claim the cost of insuring a rental property. Refer to your quarterly statements for the amount, or request an annual breakdown from your provider.

For your free investment property health check, please contact 07 3123 7373 or lauren@rentalresults.com.au