The Essential Guide To Common Investment Property Tax Deductions (2020 Edition)

Join Our Free Property Investing Facebook Group


Can I Claim Painting On My Investment Property? – Investment Property Tax Deductions



Can I claim painting on my investment property? Of course, you can claim painting on your investment property. You can claim any expense which is relatable to producing assessable income, except for travel, which I’ll get to shortly, which isn’t on my list that I’m reading from. So, but with painting, yes, it’s natural that you need to touch up the paint when you have a changeover of tenants. So, whatever the cost of the paint, you can claim it. If you get a painter to paint, you can claim the labor costs. The one thing you can’t do is you cannot claim your own labor costs in relation to any work on the property, let alone painting.

Can I Claim Interest On My Investment Property?



Can I claim interest paid on my investment property? Of course, you can, interest is one of the main investment property tax deduction and it’s one of the biggest expenses related to producing assessable income on your investment property. So any interest that you have incurred on your investor loan, you can claim on your investment property. Let’s remember anything that’s personal related, so you can’t put a car on to your investment property and you’ll find that you can’t put your part of the house loan onto the investor line and claim that as well. It’s claiming the deck that relates to the investment property.


Can I Claim A New Kitchen On My Investment Property?



Can I claim a new kitchen on my investment property? Yes, you can. What we need to be careful between repairs and improvements because it’s two different treatments. So, if you repair something in your kitchen, yes, you can claim that the whole cost outright. However, if you decide to rip out the old kitchen and put a new $5,000 kitchen in, well then you have to depreciate it. Every year, the rental guide is released by the ATO. At the end of that guide is a depreciation schedule for all depreciable items. So you can get the yearly depreciation amount on that, or if you have a lot of different items that you’d want to depreciate, you can go to a property surveyor, such as Washington Brown, BMT, and they can do a whole inclusive report for you.


Can I Claim New Carpet, Tiles Or Flooring on My Investment Property?



Can I claim new tiles or flooring on my investment property? Yes, you can. But we need to be careful in what we’re claiming because if we’re doing a repair on any of those items, we can claim the whole lot. So, if I spill a whole lot of paint, you know, on the three-square meters of carpet, I tear it up and I get a new carpet which matches and put that down. That’s a repair, I can claim that. However, if I decide to rip up the whole lounge room carpet and put in floorboards because I want to change the aesthetic, yes I can claim it on the investment property but, I have to do it over a depreciable period of time. You still get to claim the whole lot, just over a longer period of time.


Can I Claim Bathroom Renovations on My Investment Property?



Can I claim a bathroom renovation for my investment property? Yes, you can, but you need to be careful. Is it a repair or was it a complete renovation? If it was a complete renovation. Well then you have to depreciate the items that you were putting in that bathroom. If it’s a repair and water damage in the ceilings or in the floor or even tiles, that’s different. You can just plan that out a lot in that actual year so you can claim both figures at the site time, but one is going to be over a longer period of time if it’s depreciated.


Can I Claim Solar Panels On My Investment Property?



Can I claim solar panels on my investment property? Great question. Yes, you can now some older systems or plans used to generate a feeding tariff that produced income. Technically on investment property, you’d have to pay tax on it if you’re in that situation. However, most of the time now, solar panels installed are just offsetting a credit, uh, for expenses in relation to the power that you don’t have to pay tax on. This is reducing how much power has to be paid by the tenant so it’s an act of goodwill. But the one thing you do have to remember, if you spent $10,000 on a system, you just can’t claim the whole 10 grand. We have to go to the rental guide issued by the ATO, check out all the yearly claim is and do that.


Can I Claim Property Management Fees on My Investment Property?



Can I claim property management fees on my investment property? Yes, definitely. That is a pure cost for you to produce the assessable income on your investment property. So, any admin fees, report fees, leasing fees, inspection fees and the property management fee itself, you can claim on your tax.


Can I Claim Agent Fees When I Sell My Investment Property?



Can I claim agent fees when I’m selling an investment property? That’s a great question. You claim agent fees, but it doesn’t form part of your normal tax breaks on investment properties and tax deductions in your rental property schedule or tax. Agent fees are actually claimable on the capital gains calculation. So when you’re working at capital gains and all go check out another capital gains video, I’ll go through it there. But when you calculate any capital gains, that’s where you can add in the agent fee. So you don’t miss out, you do get to claim it, but you just have to use it in a different process.


Can I Claim Stamp Duty On My Investment Property?



Can I claim stamp duty that I pay for buying an investment property? Yes, you can but you can’t claim it in the normal rental schedule year to year in your tax, it forms part of your capital cost base for when you sell the property. So, if you don’t sell it, you never claim them. But most people end up selling their investment property at some stage. So, when you sell out, it forms part of the cost base and that’s where you can claim. So, you do get the same tax benefit but you just have to wait.

Get in touch with us to know more about investment property tax benefits.

Contribute to the article. Leave a comment below!

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Any mention of interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

Join Our Free Property Investing Facebook Group

Nieuvision Logo

How can we help?