Investment Property Tax Deductions

Individuals who purchase an investment property may be eligible for a number of investment property tax deductions. Landlords can often claim tax deductions for a wide variety of expenses that are related to the property they own and have available for rent.

One Minute Tax can advise you on what can be claimed and help prepare all relevant tax documents relating to investment property tax deductions.

Expenses can be claimed on the following expenses:


One of the most common investment property tax deductions is rental income, which is taxable to the owners of the property proportional to the ownership interest that is shown on the title. It is important to note that rent received must be at normal market rates if expenses are able to be claimed in full and that the rent must be declared in the same year it has been received in.

Interest Claims

Interest paid on a loan that has been used to purchase a property is deductible, as long as all the loan money borrowed was used to buy the investment property.

Repairs and Improvements

Repairs and improvements made to your investment property during the period it’s leased can be claimed as investment property tax deductions. In general, repairs that have been carried out within the initial 12 months of the property ownership cannot be claimed, as they can be used to reduce capital gain when the property is sold. Improvements made to property are not deductible in full and will need to be depreciated and claimed over the period of their effective life.

Other Investment Property Tax Deductions

Other investment property tax deductions include:

  • Advertising for tenants (internet, newspaper, etc.)
  • Bank charges
  • Body corporate fees
  • Cleaning
  • Council rates
  • Electricity and gas
  • Gardening
  • Insurance
  • Legal expenses
  • Mortgage discharge expenses
  • Pest control
  • Postage
  • Security
  • Stationery
  • Telephone
  • Travel expenses
  • Water charges

Contact One Minute Tax Today

To find out more about investment property tax deductions and what we can do for you, contact us today on (03) 8899 7506 or send an email to We’ll be in touch as soon as possible.