Tax tips for property investors

If you’re a property investor, it’s that time of the year again.

It’s now the time to get everything ready and to know what makes a tax deductible expense.

If you keep good records and receipts you can avoid any tax time panic.  Also, you need to speak to your Accountant to know about depreciation, capital works and capital gains tax.

Good recordkeeping

It is important to keep records properly throughout the year to prevent EOFY panic. It helps to create a list of expenses that you can claim and save receipts throughout the year. Here is a general list of receipts that property investors must keep handy:

  • Interest paid on your investment loan
  • Rental payments
  • Bank Fees
  • Borrowing Costs
  • Strata costs
  • Fees paid to Agent/Property Manager
  • Any renovations or improvements made to the property
  • Repair and maintenance work
  • Land Tax
  • Depreciation Schedule


With the passage of time, buildings and fixtures wear out and depreciate in value. Property investors can claim depreciation deductions on their rental properties for the structure as well as equipment used in the property.

However, investors continue to struggle with what they can claim, often missing out on depreciation benefits. Or, they prepare incorrect claims that could lead to an audit by the ATO.

Capital works allowance

You could claim for the wear and tear in the structural elements of the property such as flooring, tiling, bricks and mortar. The deductions are calculated by taking into account the construction date of the property, the type of the property and its historical cost.

Get professional advice

Often property investors land into trouble by guessing their tax deductions or over-claiming for their rental properties. So get professional advice from your Accountant and don’t be shy about asking questions to understand your tax return better.

ATO Information

Please see this link to ATO website:  Residential rental properties | Australian Taxation Office

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