As with any form of profit generating activity, the expenses you incur in order to make an income are generally tax deductible. Naturally, this applies to investing in property. Today we’ll be looking into the range of investment property tax deductions items you can claim in order to minimise your tax bill.
Maintenance Costs
If you’re paying someone to tend the garden or to provide cleaning services, you can claim the incurred expenses as a tax deduction. Likewise, body corporate fees represent a deductible expense. Repairs and construction costs for your investment property are also tax deductions you can claim.
Electricity, Gas and Water Bills
If you’re paying the electricity, gas and/or water bills instead of your tenant then you can claim these on tax. Furthermore, you can claim the cost of having these services connected.
Additional Services Provided to Your Tenants
Providing additional services to your tenants such as telephone, internet or pay TV can all be counted as property investment tax deductions. Of course, if your tenant is paying for these services they can’t be claimed.
Fees, Rates, Commissions and Charges
There are several fees and charges associated with owning an investment property. Some of these include:
- Real estate agent fees and commissions
- Solicitor disbursements and accounting fees
- Advertising for new tenants
Bank charges, interest on loans and mortgage repayments are all costs associated with your investment property that reduce your taxable income. Depreciation on your assets is also included.
Now, because these items all reduce your income you don’t necessarily want to run out and increase them in order to reduce your tax bill. Just be aware and keep these investment property tax deductions in mind so you can make your property investment more profitable.