What can property investors deduct at tax time?

What can property investors deduct at tax time?

It’s that time of the year again when investors can save thousands of dollars by being savvy with deductible items on their property. From insurances to renovations, there are various items investors are eligible to claim, however many of these items can be easily missed by those without the right knowledge or an informed accountant. It’s also worth remembering that to claim a deduction, you must be able to show how much was spent, how you worked out its value, and the way the expense was calculated. Here are some common ways to minimize your tax bill. Property staples With every property purchase there are numerous staple items which are deductible regardless of the type of property. These include council rates, water rates, strata, and pest control. Insurances are also deductible including landlord’s, building, contents and public liability insurance. If you work with a property manager or real estate agent, these costs are also deductible including fees, commissions, letting fees, as well as statement and admin fees. Further to property staples, are the ongoing repairs and maintenance costs, which are likely to vary year on year depending on the work required, and age of the property. These include plumbing, electrical, handyman costs, or any supplier who aims to repair the functionality to your property. Travel can also be deductible for the owner to carry out or inspect the property, or where the sole purpose for the trip relates to the property, for instance collecting rents. Many investors should also look at claiming interest on their mortgage or loan, as it can often be the largest tax deduction within a...