19 Things to Claim in Property Investment While Filing Tax Returns

Property Investment Claims

Investment properties include tax deductions that can be used for minimising taxes on the property. But these tax deductions can be confusing and quite difficult to understand, mostly in regards to claims.

One should know what one can deduct as expenses or as depreciation. Hence one should take help from professional accountancy firms to help you out. Here are some legal ways to claim tax deductions on the property.

List of Expenses that can be claimed while filing Tax Returns

1. Advertising for Tenants

There are advertising costs involved especially when you need to get new tenants in place. One should be able to claim to advertise as the deduction if the property is for rental purposes.

2. Body Corporate Fees

Body corporate fees should be claimable if you are the owner of one unit of a townhouse and you bear the maintenance expenses.

3. Borrowing Expenses

Borrowing fees can be included as a cost to generate income and hence can be claimed as expenses.

4. Cleaning

If your furnished property is now out of tenants, then the property needs to be cleaned out with your money. You can claim cleaning charges for the transition.

5. Council Rates

If you own property, council rates are applicable, since it includes costs involved in maintaining the street and should be tax deductible if the property is used for income generation.

6. Capital Allowances (depreciation on plant)

Your building can depreciate right from its date of creation. By adding new things to the property, the updates also depreciates over time. All things with the value associated with them, and that depreciates over time can be claimed for deductions.

7. Gardening/ Lawn Mowing

If there are costs involved with maintaining gardens on your property, then the mowing costs should be claimable too.

8. Insurance

Hopefully with landlord’s insurance to cover costs when a property is destroyed or tenants affecting damage on it, one can claim the insurance amount since it helps you to cover costs that generate income.

9. Interest on loan(s)

Obviously, the interest expense associated with the mortgage can be claimed but it is applicable if you are paying sizeable principal and interest both. Loans secured for private purposes can’t be claimed as tax deductions.

10. Land Tax

Land tax is incurred on your property is an extra cost across your portfolio. So owning investment properties can be claimed as a tax deduction. But the claim should on the land tax and not for properties used for income generating purposes.

11. Legal Fees

The legal expenses associated with the purchase and sale of properties aren’t tax deductible, but if there are legal costs involved in maintaining a rental property or facing tenant issues, you can claim the same.

12. Pest Control

You may often need to do something for pest control, and this is a cost that you will incur to keep rental income coming in, and thus can be claimed as tax depreciation.

13. Property Agent Fees/Commission

Real estate agents who charge you rental income as commission, should be claimed on your tax return.

14. Repairs and Maintenance

In most cases, you can claim repair costs and maintenance costs of the property although it needs to be cleared by the accountant.

15. Capital Works Deductions

When making improvements to the property, one can claim costs on depreciation too.

16. Stationery and Postage

All the stationery or postage costs involved in mailing rental agreements and the like can be claimed in tax deductions.

17. Travel Expenses

One can claim costs directly associated with improving investment property and not related to family holidays.

18. Water Charges

Water, electricity and gas costs should be claimable as expenses and liable for a tax deduction.

19. Building Age

The age of the building affects deduction costs since it is deprecated since it is created.

It is important to hire a well-known accountant for helping you out with tax deductions but there are many ways to save on taxes on property, so keep the ideas open.

If you’re looking for advice regards property investment, do contact Universal Taxation since they are veterans in the field with a slew of tax advisors working under the canopy.

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Taral Khandheriya

Taral Khandheriya is a Certified Practising Accountant (CPA) and author at Universal Taxation, who specializes in tax preparation, small/micro business accounting, business services, bookkeeping, business broking, etc. He is well versed in implementing new business strategies that enhance business processes and improves profitability. In his spare time, he reads books on finance, investment tips, and business development strategies.

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