What tax deductions are there for having an investment property?

First of all, this is a general list and taxation is under the duties of your accountant. If you are undertaking any works on your investment property, please refer to them first.

There are a plethora of tax deductions that are available in owning an investment property and you will need to keep evidence of these.

These include:

• Depreciation (existing property bought post 09/05/2017 can not claim Division 40 – Plant and Equipment)

• Interest on investment loans

• Product package fee

• Lenders Mortgage Insurance (over a 5 year period)

• Settlement fees

• Council Rates

• Water Rates (tenants should pay for water usage if you have a plumbers certificate)

• Building and Landlord Insurance

• Property Management Fees

• Maintenance and Replacement items (as opposed to renovations and structural changes)

• Smoke Alarm Testing

• Pool Certificates

• Stationary

• Phone calls

• Computer

• Internet

• Home office (Capital Gains Tax implications if you sell your home though)

Travel expenses are no longer tax deductible since 1 July 2017 unless you are carrying on a business of letting rental properties (like your property manager).

Other expenses such as Stamp Duty, renovations or major works are taken into account when the property is sold and included in capital gains or loss calculation.