Tax Deductions for Investment Properties


As a property owner it makes sense to assert everything you are lawfully entitled to. With tax time around the corner, take a look at the deductions and speak to your tax professional to ensure you’re not ignoring prospective claims.


Interest is undoubtedly the most important tax deduction in a negative gearing agreement. The interest incurred in borrowing money for the property is tax-deductible, such as money used to buy the property, undertake maintenance and improvements, or deal with renter related.

Ownership expenses

The expense of renters is tax-deductible, so are renting charges paid to property managers who procure renters for you. Any expense incurred in terms of planning or varying the rent with your renter is also tax-deductible, even though such expenses are usually considered capital in nature.

Repairs and maintenance

The expense of repairing something to its first condition due to renter wear and tear is tax-deductible.

Other holding costs

Possessing expenses are monies that go into having a property and include body corporate fees, travel expenses, stationery and postage expenses, cleanup expenses, gardening expenses, building and contents insurance premiums, rates, pest control, and property manager’s fees. These expenses are usually tax-deductible in advance.

Thinking about property investment Sydney? Speak to a Mortgage Broker.

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