Investment Property – Tax Deductions

If you own an investment property, you may be eligible for a number of tax deductions. These deductions can help you reduce your taxable income and save money on your taxes.

Below, our tax return accountants take a look at some of the most common investment property-related tax deductions in Australia:

• Interest on loans: You can deduct the interest you pay on loans used to purchase or improve your investment property.
• Depreciation: You can depreciate the value of your investment property over time. This deduction is based on the age, location and type of property.
• Body corporate fees: If your investment property is a strata title property, you can deduct the body corporate fees you pay.
• Rates and taxes: You can deduct the rates and taxes you pay on your investment property, as well as the cost of tax preparation services.
• Insurance premiums: You can deduct the insurance premiums you pay on your investment property.
• Repairs and maintenance: You can deduct the cost of repairs and maintenance you make to your investment property.
• Advertising: You can deduct the cost of advertising your investment property.
• Travel expenses: You can deduct the cost of travel expenses you incur in managing your investment property.

It’s important to note that not all investment property-related expenses are tax deductible. For example, you cannot deduct the cost of personal expenses, such as the cost of food or entertainment.

If you’re unsure whether an expense is tax deductible, you could benefit from organising tax agent services in Melbourne.

Here are some tips for maximising your investment property tax deductions:

• Keep good records of all your expenses. This includes receipts, invoices and bank statements.
• Make sure you claim all of your eligible deductions on your tax return.
• Speak to a tax accountant if you have any questions about your investment property tax deductions.

By following these tips, you can maximise your investment property tax deductions and save money on your taxes.

At AIM S Australia, we have a dynamic team of highly qualified and committed bookkeepers and tax return accountants in Melbourne who represent a combination of youth and experience.

We can help you prepare individual tax returns, sole trader tax returns, partnership tax returns, trust tax returns, company tax returns, crypto tax returns, expat tax returns, non-resident tax returns, overdue tax returns, foreign resident tax returns, investment property tax returns and more. We can also assist with payroll solutions, late tax filing, capital gains, company formation, business setup, GST management services and BAS. Contact us today to learn more.