8 Tax Deduction Tips 2024

8 Tax Deduction Tips 2024

• Posted By Katrina Gaviola

Key Tax Deductions:

 

1. Interest on Loan:

• You can claim the interest paid on loans used to purchase investment properties as a tax deduction. This reduces taxable income and helps offset costs.

 

2. Depreciation:

• There are two types of depreciation that can be claimed:

• Division 43 (Building Depreciation): This covers the building structure and permanent fixtures.

• Division 40 (Plant and Equipment): This covers assets like appliances and furnishings. Both can reduce taxable income.

 

3. Repairs & Maintenance:

• Costs incurred to maintain or repair an investment property (like fixing leaks, replacing appliances, or regular upkeep) are deductible, helping to offset ownership expenses.

 

4. Council Rates & Water Charges:

• These regular expenses, essential for property maintenance and utility supply, can also be claimed as tax deductions.

 

5. Insurance Premiums:

• Insurance policies related to the investment property, such as building or landlord insurance, are deductible.

 

6. Agent’s Fees:

• Fees paid to property managers or real estate agents for managing or leasing your property are deductible.

 

7. Professional Services:

• Costs associated with hiring accountants, solicitors, or legal advisors to manage property-related matters can be deducted.

 

8. Travel Expenses (No Longer Claimable):

• As per the update, travel expenses related to visiting the rental property are no longer deductible.

 

 

 

 

Important Points:

 

• Record Keeping: The document emphasizes the importance of maintaining accurate records and receipts to support claims.

• Specificity of Deductions: Only expenses directly related to the rental property (not personal expenses) are eligible for deductions.

 

 

 

Conclusion:

 

The guide effectively provides property investors with essential information on how to maximize tax benefits by deducting various property-related costs. These deductions can significantly improve the financial viability of owning an investment property, but it’s important to stay informed about changes in tax regulations.