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Is an Investment Property Tax Deductible?

Investment properties have tax-deductible payments that can help you reduce the tax you pay. This means that you reduce your average rate of tax and receive a larger tax rebate at the end of the financial year. A large number of the expenses incurred relating to the running costs of your investment property are tax-deductible and include the following:

  • Rental Advertising Expenses
  • Interest Repayments on an Investment Property Home Loan
  • Property Expenses (This includes Council Rates, Land Tax and Strata Fees)
  • Depreciation (This includes the building and of the appliances and furniture within)
  • Repairs and Maintenance (This includes repairs, gardens, pest control etc.)
  • Insurance
  • Book Keeping Costs (This includes, stationery costs, phone costs, agent’s fees etc.)
  • Travel Costs
  • Legal Expenses
  • Capital Gains Tax Discount (50% reduction in CGT when the property is owned for more than 12 months and the property is then sold)

It’s suggested that you consult a tax accountant to ensure that you take advantage of all eligible deductions and to ensure that all deductions are lawful.