New to Property Investing? Here Are Some Tax Deductions You Might Be Able to Claim
If you are thinking of buying or you’ve just bought your first investment property in Queensland, tax time can feel a bit overwhelming. The good news? There are a range of expenses you may be able to claim, which can really help with the overall cost of owning an investment.
Here’s a simple breakdown of some common tax deductions new investors should know about.
Loan interest
You can usually claim the interest charged on your investment loan (not the repayments themselves). This is often one of the biggest deductions for property owners.
Property management costs
If you use a property manager, most of those fees are typically deductible — including management fees, letting fees, advertising for tenants, and lease renewals.
Repairs and maintenance
General repairs and maintenance to keep the property in good working order can often be claimed. Think plumbing fixes, replacing broken items, or wear-and-tear repairs. (Upgrades and renovations are treated differently.)
Rates and utilities
Council rates and water charges related to your investment property are generally claimable.
Insurance
Landlord insurance, building insurance, and public liability cover are usually tax-deductible and well worth having.
Depreciation
Depending on the age of the property, you may be able to claim depreciation on the building and certain fixtures like air conditioning, appliances, carpets, and blinds. Many investors engage a quantity surveyor to prepare a depreciation schedule.
Other bits and pieces
Things like body corporate fees, accounting fees, bank fees linked to the loan, and some legal costs may also be deductible.
Disclaimer
This is general information only and not financial or tax advice. Everyone’s situation is different, so it’s important to chat with your accountant or tax adviser to understand what you can (and can’t) claim.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. Property Boutique will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
