Investment property tax deductions you can claim before EOFY

Savvy investors can strategically plan their finances and potentially reduce their tax bill before June 30

As the end of the financial year (EOFY) sneaks in, now is the time for property investors to consider and leverage the various tax deductions they’re entitled to. By understanding what’s available, savvy investors can strategically plan their spend and potentially reduce their tax bill before June 30 comes around. Here’s a few things to consider:

Maintenance, Repairs and Improvements

Expenses incurred for the maintenance and repair of investment properties are generally tax-deductible. This includes costs associated with fixing plumbing issues, electrical problems, roof repairs, pest control, and general wear and tear.

Keep in mind the difference between repairs (deductible) and improvements (capital expenses).

While improvements are not immediately tax-deductible, they can be claimed over time through depreciation. Capital improvements are enhancements that increase the property’s value or extend its useful life. If you choose to renovate the kitchen or bathroom, install a security system, or recarpet the bedrooms, these big or small improvements can be depreciated and claimed as deductions over a specified period.

Depreciation

Property depreciation refers to the wear and tear that appears over time and can be claimed as a tax deduction. Both capital works depreciation (building structure) and plant and equipment depreciation (fixtures and fittings) can be claimed. Engaging a quantity surveyor can help determine the accurate depreciation schedule and maximise the available deductions.

home loan mortgage broker

Investment property tax deductions you can claim before EOFY

Interest Expenses

Interest payments on loans taken out for investment property purposes are typically tax-deductible. This includes mortgage interest, loan establishment fees, and interest on credit cards used for property-related expenses. Ensuring accurate record-keeping of these expenses is crucial to claim the maximum deduction.

Property Management Fees and Marketing Costs

Investors can also claim on the incurred property management fees, including monthly management fees, maintenance coordination and advertising costs like photography and online listing adverts. Be sure to keep records of all invoices and statements to substantiate these deductions.

By claiming eligible deductions, investors can potentially reduce their taxable income and increase their overall return on investment. For more information get in touch with UFinancial here.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.

Subscribe to our newsletter to read about ‘All things finance’

At UFinancial, we love talking about finance-related matters. From home loans and refinancing to financial planning, investing, and tax.

author avatar
UFinancial
Google Rating
5.0
Based on 340 reviews
js_loader

Selling Your Home Guide

Name

Renovating Your Home Guide

Name

Paying Off Your Home Guide

Name

Building a Home Guide

Name

Professional Loans Guide

Name

Self Managed Super Fund Lending Guide

Name

Free Investment Property Analysis

  • This field is for validation purposes and should be left unchanged.

Free Property Report

  • This field is for validation purposes and should be left unchanged.

Talk to us today

  • (e.g. 0422999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Download our free Property & Investment tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Construction Guide

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Refinancing tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your property investor tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your free budget template

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Home Loan tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Money Management tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Refer a Friend

  • (e.g. 04222999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Let's talk about commercial and asset finance

"*" indicates required fields

(e.g. 0422999222 or 0396869087)
This field is for validation purposes and should be left unchanged.

Accounting & Tax

What are you interested in?

  • This field is for validation purposes and should be left unchanged.

Subscribe to our newsletter

Financial news, blog posts, special events, giveaways and promotions. – please register below.

Let's chat about your car loan options

Car loans

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Let's chat finance

Financial planning

  • This field is for validation purposes and should be left unchanged.

Let's chat about a new loan

Upgraders

  • This field is for validation purposes and should be left unchanged.

Let's chat about property investment

Property Investors

  • This field is for validation purposes and should be left unchanged.

Let's chat about your refinancing options

Refinancers

  • This field is for validation purposes and should be left unchanged.

Let's chat about a loan for your first home

First Home Buyers

  • This field is for validation purposes and should be left unchanged.