Property investment tips: Tax deductible expenses for your rental

By the resi financial blog team, 30 May 2014

Tax deductible expenses for rental

Becoming the owner of an investment property, whether it's through a refinance or an outright purchase, means you're able to claim a number of tax deductions. 

As the end of the financial year is nigh, many property investors are getting their financial records together in order to claim these deductions. This then allows them to reduce their taxable income, offering them many benefits. 

If you're an investor and wondering what you can and can't claim, here's a small list of expenses you could be eligible for:


If you manage your own rental properties, chances are you spend a lot of time commuting to and from the property for inspections and other things. Whether it's a short distance or perhaps a couple hours' drive, this can all rack up to a sizeable amount. 

Fortunately, this is one expense that you're able to claim in your tax return through the Australian Taxation Office (ATO). 

To ensure you're managing your expenses accurately, it might be a good idea to get a log book for your car. This can help you keep track of the times you used your car and how long journeys are. Make sure you keep your personal trips out of the log book, however, as these aren't claimable expenses under ATO guidelines. 

Finding tenants

Advertising online, printing flyers or even putting an ad in the newspaper can be costly. Unfortunately, advertising is one thing that many investors need to spend money on in order to make money. The best part is, these costs are tax deductible. At the same time, you want to ensure you're using the most effective outlet for your property as possible. 

Interest on your loan

This final tax deductible expense is a very useful one! Whether it's a fixed rate loan or something else, the interest charged on the home mortgage used to buy your investment property is a cost you can claim with the ATO. This can also cover loans used to renovate your rental home.

Categories: Home Loans, Property Investment