As much as we look forward to snapping up a bargain in the EOFY sales, we know the dreaded tax lodgement looms in our not too distant future. As painful as it is, it goes without saying that it is in your financial interests to claim your full entitlements on every tax return.

So, if you have an investment property, be sure to provide as much information to your accountant as possible to ensure you are claiming the deductions, you are entitled to. While this is not a definitive list and I am not providing any tax advice, the below should prompt a discussion with your accountant to see if these investment property expenses are relevant to your personal tax situation:

Advertising for tenants and property management fees.
Loan interest and ongoing loan fees.
Council rates, land tax and strata fees.
Building depreciation plus depreciation of fittings and fixtures like stoves, carpets and hot water heaters.
Repairs, maintenance, pest control and gardening
Building and landlord insurance
Stationery, phone and administrative costs
Accounting or bookkeeping fees
Depreciation

Basically, if you spend money on your investment property or on the management and running of your investment property, you should keep accurate records of these costs and present them to your accountant who will advise if they are pertinent to your tax return.

If you have an investment property loan, this will almost certainly be your greatest individual expense annually. There are some very cheap fixed rates available at the moment which will likely save you thousands each year in interest.

If you would like me to run a comparison for you which may turn a negatively geared investment property into a positively geared asset, give me a call.

Michael