10 tips to maximise your tax deductions

rental property

Another financial year is drawing to a close, which means it’s time to start thinking seriously about maximising your tax savings. As a property investor, it is important to make sure you are claiming as many tax deductions as you are legally entitled to. The more deductions you claim, the higher your tax benefit.

To help get your mind into tax mode, we’ve put together 10 of the most common tax deductions you can claim on your investment property:

  1. Property management fees.
  2. Advertising costs associated with finding a new tenant.
  3. Interest – if your property is negatively geared, the interest incurred on money you’ve borrowed for the investment property is tax deductible (but only if the property is available to rent).
  4. Council rates, land tax or strata fees.
  5. Building depreciation.
  6. Depreciation on fittings or fixtures such as hot water heaters, carpets and air conditioners.
  7. Building and landlord insurance.
  8. Property repairs and maintenance – it’s important that these repairs are done to fix tenant wear and tear, not damage that existed when the investment property was purchased.
  9. Cleaning and gardening costs.
  10. Pest control.

As with all financial and investment matters, it’s essential to get professional advice that is tailored to your situation.