5 Hot Tax Tips for Rental Properties

Are you getting the most out of your investment property at tax time?


Here are our top 5 tax tips to help you along the way to ensuring that you are making the most out of allowable tax deductions for rental property and putting more tax dollars back into your pocket.



1. Tax Depreciation Schedule

Are you claiming depreciation on your rental property building and chattels (fittings such as ovens, carpets, blinds etc.)? If not you are missing out on thousands of dollar’s worth of allowable rental property deductions each year. A quantity surveyor can prepare a tax depreciation report for your rental property which will allow you to make this claim. Fees paid to have a tax depreciation report prepared are also tax deductible.


 2. Rental Property Related Travel

Do you travel to inspect your property, carry out repairs, drive to Bunnings to purchase materials to carry out repairs on your rental property? This travel is tax deductible. How can you claim? Log the KM’s traveled in your vehicle, or keep receipts/tax invoices for rental property related travel. If a portion of your travel is private the claim must be prorated.


 3. PAYG Withholding Variation

Do you receive a massive tax refund each year when you lodge your tax return due to your negatively geared rental property? Rather than receiving the tax benefit from negatively gearing when you lodge your annual tax return, you could receive this in each pay cycle. Imagine what you could do with the additional funds in your pay each week/fortnight/month as opposed to receiving a lump sum annually……


4. Timing of Deductions

If you expecting to have a lower taxable income next year (due to maternity leave, taking 6 months off to travel, changing occupations and taking a pay cut etc. etc.), consider prepaying some expenses this year (such as loan interest), or bring forward the repairs and maintenance (such as painting, repairing the decking or fence) to this financial year to reduce your higher income in the current year.


5. Get a Great Accountant

All accounts are not created equal. Make sure you are confident that you are getting the best tax advice for your situation. Great accountants push things to the boundaries keeping you compliant while maximising your return. Better yet, tax agent fees are tax deductible….win win.


N Cook & Associates are experts in rental property tax returns. If you are after the best advice for your rental property please do not hesitate to contact us.

info@ncookandassociates.com.au or 0416528902.