Tax Deductions Every Property Investor Should Understand

Tax Deductions Every Property Investor Should Understand

Whether your property is gaining a positive income stream or not, there are a few very important tax deductions that you need to know about.

Depreciation

Each year, your investment property depreciates along with the inclusions and this depreciation can be claimed over time. These include appliances, window coverings, air-conditioning systems, solar PV and other building technology, floor coverings and video security systems.

Landlord insurance

It’s recommended to get landlord insurance. Damage caused by accidents and natural disasters are unavoidable so your best option is to have insurance that will cover these untoward incidents. This also means that you will have backup in the event that there are issues with arrears with your tenants due to justifiable circumstances.

Marketing costs

The ultimate goal of your marketing strategy should be to attract the best quality tenants who are willing to pay optimum rent. Typically, Landlords have a specific amount set aside for marketing the property and the amount you end up spending for the marketing of your property can be claimed as a deduction against your income.

Cost of power and water during vacancy periods

Landlords who keep the utilities on do so to monitor and keep track of things that are in need of repair and maintenance. These charges incurred during the vacancy period can be deducted from your income.

Property Management fees

The benefits of enlisting the services of a good property manager doesn’t just stop at helping you achieve the optimum results for your investment property. Property management fees are tax deductible as well.

Stacey Lee Realty has experienced Property Managers to handle the task of maintaining your investment and ensure your investment is working for you with minimal hassles. Call us today at 07 3399 2966 or visit www.staceyleerealty.com.au