Tax Deductions for Rental Property Owners

When you invest in real estate, managing your tax deductions becomes integral to generate profit. Tax depreciation surveyors carry out a survey to assess things for which you may seek tax deductions. But, some landlords fail to comprehend the complete extent of tax deductions prospects even when they are completely or partially handling rental properties portfolios. Many people in Australia invest in property as a result of the various tax benefits. You must understand the ways through which you can legally deduct taxes linked to your rental property management and maintenance.

In this post, we are discussing the following four different ways of tax deductions for rental property owners:

1. Business expenditures:

It is worth mentioning that if you are a landlord then your business expenditures will be tax-deductible. A landlord is being treated as a businessman whether he owns one home or more than one. Investing in real estate is believed to be a personal business plan. The expenses that the landlord incurs will remain completely tax-deductible. It also implies that all the expenses that you may undertake for your investment property will be eligible for tax deductions. All you have to do is just follow the basic guidelines. You may hire some leading professionals to prepare the strata property act depreciation report.

2. Wages of employees:

If you recruit an employee to carry out works for your property, the expense will be eligible for a tax deduction. Payment made to roofers and carpenters for taking care of your rental home will remain tax-deductible. If you recruit property managers to take stock of property, the payment that you make to them will also be tax-deductible. Anyone who services your property, that payment will also remain eligible for a tax deduction. You should ideally check the tax depreciation lives prior to seeking tax deductions.

3. Interest on properties:

The interest accumulated while handling the rental properties will remain tax deductible every year. However, this may go beyond your basic mortgage interest. It is interesting to specify that any interest accrued linked to your rental properties will be deductible. It will include interest on home improvement loans, credit card interest when you purchase items for tenants, etc.

4. Depreciation of assets:

A rental home is believed to be a depreciating asset. As years go by the value of property rises while things kept inside it may undergo wear and tear. The lifecycle of a rental property is measured at 27.5 years. Therefore, you will be allowed to deduct 1/27th of the home’s expenditure every year. However, you will not be allowed to deduct the land’s cost. Therefore, you may require an appraisal report to distinguish those figures. You may also undertake a cost segregation study to assess the expenditure and lifecycle of every aspect of your home. It may include the roof, driveway, carpet, etc.


You may seek various property depreciation tax deductions if you happen to be a rental property owner. Meanwhile, if you travel for your rental property, even these expenses can also be deducted. In order to deduct these travel expenditures, you must maintain a proper record and receipts. If you undertake some visits for maintaining your properties, the expenses will remain eligible for tax deductions.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *