Rental properties have always been a popular investment in Australia, but they can also come with several expenses that must be considered. Thankfully, many of these costs can be claimed as part of your deduction, reducing your taxable income. This may even include repairs on your property, such as fixing a leaking shower or balcony. As the end of the financial year approaches, it’s essential to consider what tax deductions are available for your expenses. Here’s a quick guide on how you can make the most of your tax return for your investment property.
Repairs & Maintenance Expenses
If you’ve carried out repairs or maintenance on your investment property, it is possible to claim deductions for their costs immediately. It’s important to note that you can only claim these deductions if it is directly related to wear or damage from renting out the property. Moreover, the repairs must be carried out to fix or maintain the asset in its current state rather than improve it. Prioritising a leaking shower repair on your property is also in your best interests to avoid incurring further expenses, which can be more difficult to claim immediately.
Other Tips To Maximise Your Deductions
- Keep accurate records
To claim deductions for your tax return, having all the evidence of your expenses ready is essential. Keep all the receipts and invoices for your investment property and rental income. Ensure that they are properly organised and safely stored away for when you need them.
- Claim all rental-related expenses
As a property owner, there is a range of other expenses that you can claim as part of your tax return. Besides repairs and maintenance, these costs can include council rates, property management fees, insurance premiums and asset depreciation.
- Claim pre-paid expenses
Pre-paid expenses are costs incurred for services to be completed in a later income year. If you have paid for some of these expenses before the end of the financial year, it may be possible to claim them as part of your tax return for the current year. This can include other costs, such as your insurance premium for the property.
- Consult with a tax professional
Handling your tax return can be a complex process, especially with the variety of rental expenses that come with an investment property. That’s why it’s essential to employ the services of a qualified tax accountant to ensure that you have a proper understanding of which deductions you can claim.
Megasealed Bathroom & Balcony Repairs
If you or a tenant has spotted a leaking shower or balcony in your investment property, contact Megasealed for professional repair services as soon as possible. By paying for the repairs and maintenance costs before the end of the financial year, it may be possible to claim the expenses as part of your tax return. Get a free quote today for cost-effective bathroom and balcony repair solutions.
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