Gotsis Rubic & Barbariol are property investment and business accounting specialists with a large clientele of property investors. When it comes to investment property tax strategies, we understand the dilemmas that property investors face.

The ATO continues to scrutinise these four (4) particular expenditures on rental statements for Property Investment Tax.

1. Interest: Interest for the months when the property was rented or was in service to be rented can be deducted. However, only on the portion of the investment loan that relates to that particular investment property qualifies.
2. Repairs and Maintenances: Expenditures for renovations or improvements may be a depreciable expenditure, but not necessarily income tax deduction. They are, however, a capital deduction for Capital Gain property.
3. Borrowing Expenses: Finders fees for promoters and providers of properties or financing may be a capital expenditure but the fees do not qualify as an investment tax deduction. Some of these, however, may qualify a “borrowing expenses deduction”.
4. Capital Depreciation Allowance: Be sure you have the approved depreciation report from the Developer or Quantity Surveyor if you hope to be able to claim 2% of the cost of a building.