Rental Property Deductions

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At this tax time, it is important to know what tax deductions can be claimed on a rental property. Some deductions you can claim straight away where as other over a period of time.

Some expenses can be claimed immediately such as interest on mortgage, real estate expenses, capital works deductions, repairs & maintenance. Other interest expense can also be claimed on loan to purchase a depreciating asset such as heating or air conditioner.
Cost incurred on preparation of lease as well as expense to remove the tenant is also claimed as immediate deduction.

Expenses that can be claimed over number of years are depreciation of the assets, structural improvement and borrowing cost.
Assets such as air conditioner, hot water system, refrigerators can be claimed over the life of an asset.

Structural improvements such as cost incurred to improve the structure of the building such as adding a room or constructing a fence can be claimed over the number of years.

Borrowing cost such as loan establishment fee, stamp duty on mortgage, title search fee may be claimed over five years if they are more than $100.

Contact us today on 1300 300 106 to discuss what more can you claim.