Chris Childs


3 more tax deductions on your investment property

We already had a quick look at the deductions that can be made on investment property when you file your taxes, but it’s just the tip of the iceberg. By assessing all of your expenses as a landlord or simply an investor who uses a property management team, you can really cut down on your bottom line.

With this in mind, let’s check out some of the deductions you might have missed. Are you getting as many returns as you can?

Your stamp collection

Okay, we don’t actually mean the stamps you have been collecting as antiques. However, the costs of stationery and postage you use for the purposes of managing a rental property can be claimed back as a tax deduction.

You could be processing paperwork for repairs, or simply mailing important documents to your tenants.  Whatever it is, it’s a small claimable sum that you might have overlooked when filing your return.

Marketing costs

Owning investment property in Queensland means you’re unlikely to be short on tenant demand. A July 24 release from the Real Estate Institute of Queensland showed that central Brisbane’s vacancy rate for rental properties is 3 per cent, while in the middle ring suburbs it is 2.4 per cent.

This shows demand is strong, but it doesn’t mean you should skimp on advertising. Getting your property onto the right websites and print publications is an important method of marketing it to tenants. And at the end of the day, advertising costs are another item you can chalk up as a tax deduction.

Paying the body corporate

If you have made an investment in a strata property then the overseeing authority, the body corporate, will charge annual or quarterly fees. It maintains and manages all properties in a block, so you can sit back and enjoy capital gains or positive cashflow.

Once you have paid the fees to this body corporate, hold onto your paperwork – that’s right, it’s another tax-deductible cost!

The Australian Taxation Office has a full inventory of what you can claim on an investment property, so it pays to do some research. The benefits of making this type of investment aren’t restricted to profits on the home itself; tax breaks offer you even more opportunity to get ahead.

As for selecting the right investment property? Make sure to check in with the team at Think Money. Our wealth coaching staff may be able to help you find an ideal piece of real estate.