Tax Blogs

Rental Property Tax Deductions

June 15, 2022

Tax deductions for rental properties

Avoid missing these Top Rental Tax Deductions

Do you own a rental property? Are you battling falling prices and rising interest rates? We are sure that being able to put money back in your pockets would be gladly accepted.

A great way to do this is by ensuring you are claiming back all the tax deductions you deserve.

Around 70% - 80% of people out there aren’t maximising their investment property tax deductions.

The most common investment property tax deductions that are missed are fixtures, fittings and building costs for your property.

A great way to get back as much as you can is by getting a depreciation report done on your property, they cover every tax deduction possible – even the rubbish bin is included! Sure, it may be $500 to $800 out of your pocket initially to pay for the report, but it could mean getting thousands of dollars back on your next tax return.

Common tax deductions claimed for rental properties include:

  • Council & Water Rates

  • Interest on home loans – it’s important to keep your home loan separate from other personal loans to get this tax deduction

  • Real Estate management fees

  • Pest control

  • Smoke alarm maintenance

  • Repairs & Maintenance done to the property

Last year the government cut tax deductions for original fixtures and fittings that weren’t bought new by an investor, but there are still a lot of deductions available to claim.

Capital works, building construction costs, the cost of altering a property and the cost of capital improvements to surrounding property; have not been affected by the rule change. They offer a 2.5% annual deduction each year for the building cost of a property, not the land.

Don’t miss out on the tax deductions you deserve when completing your etax return, and don’t forget to have the depreciation report done on your property so you don’t miss anything out.


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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.

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