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Investment property deductions: How to pay less tax and turn more profit from your investment

Property investors aren’t always aware of the full gamut of investment property deductions that they are entitled to. In this blog post, we will discuss some of the most common investment property deductions and how you can take advantage of them.

How to make the most of your investment property deductions

Investment property deductions are often overlooked by investors, but they can save you a lot of money come tax time. Here are a few of the most common investment property deductions:

The cost of repairs and maintenance

Repairs and maintenance deductions include things like painting, electrical and plumbing repairs, cleaning and anything else not considered an ‘improvement’. As a property investor, it’s important that your property’s upkeep is maintained at a high standard to keep tenants happy and rental yields high. That is why it’s nice to know that the ongoing costs of repairs and maintenance carried out on your investment property are claimable, and potentially a worthwhile consideration to maximise deductions before June 30.

The cost of insurance

Insurance is an important investment property deduction, as it can help you recoup some of the costs if your property is ever damaged or destroyed. The ATO allows you to claim a deduction for the cost of buildings insurance, contents insurance, and public liability insurance. In addition, additional covers like landlord insurances is also deductable.

The interest on your investment loan

One of the most common investment property deductions, the interest you pay on your investment loan is tax-deductible, which can help you save a lot of money come tax time. It’s important to note that any portion of a loan used to for personal items (ie. a car or holiday) is not deductible and must be apportioned.

The cost of depreciation

We’ve written about this investment property deduction before. At first, calculating the depreciation on your investment property can seem like somewhat complicated. However, with the right property investor tax tools to help you, it can be easy to not only manage but maximise your deprecation claims year after year.

Body Corporate Fees

Increasingly, property investors are snapping up strata units for a few simple reasons: they are affordable, popular and easy to maintain. And as a property investor, you are still required to pay body corporate expenses, for things like building insurance, common area upkeep, and construction repairs. However, unlike owner-occupiers, as a property investor, you can deduct all body corporate charges as a tax deduction each year, including any dreaded special levies.

Property management fees

If you’re using a property manager to take care of your investment property, then you can claim the fees you pay them as a deduction. This includes letting fees, advertising, entry/exit reports any anything else charged in the course of managing your property.

These are just some of the most common investment property deductions. For more information on how to save money on your taxes as a property investor, be sure to check out our blog for more ideas to help property investors like you get a healthier tax return.

If you’re looking to save money on your taxes, be sure to take advantage of these investment property deductions. And if you’re looking for custom-built software to help you manage your tax and properties in real-time, look no further than TaxTank. We are the only software of our kind dedicated to taking the hassle out of tax for individual taxpayers and property investors alike. Sign up for a free 14-day trial today. Oh, and TaxTank is also 100% tax deductible.


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Important Tax Deadlines

For all incomes earned between 01 July 2023 – 30 June 2024.  

Tax returns can be lodged from 01 July 2024. You can prepare early with TaxTank so you know exactly what’s going on ahead of time.

For all incomes earned between 01 July 2022 – 30 June 2023.  

Tax returns are now OVERDUE.  

You can use TaxTank to get up to date and lodge with our partner accountants.

Tax returns are OVERDUE.  

You can use TaxTank to get up to date and lodge with our partner accountants.

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