The Australian Tax Office allows property investors to claim genuine property costs in their tax each year. While some costs are obvious, there are a few that you might have missed. Here's five great tax deductions thatyou can use to minimise the tax taht you are paying on your property.
There are usually advertising costs involved in finding a tenant. This could mean website portal advertising, print media, signboards. Dont forget to keep receipts as these items are tax deductible.
2. Bank Fees and Charges
Bank fees that are part of your cost to generate an income are claimable as an expense. Speak with your accountant if you are unsure.
3. Land Tax
Land tax is incurred if you own several properties within one individual state. This can be a significant cost which comes part and parcel with owning several properties. As land tax is a cost of owning investment proeprties you can claim that as a tax deduction.
Utilities such as water, electricity, gas that you are paying, rather than the tenant, are usually claimable as an expense as well as a tax deduciton.
5. Property agent charges and commissions
The cost of managing your properties by a professional agent is a deductible expense. So don't skimp on using a professional agent because of the cost. As well as a risk mitigation strategy and a deduction, you will gain peace of mind.