Tax Deduction Checklist
Make sure you're claiming everything you're entitled to. Check off each deduction that applies to your investment property and enter the amount to estimate your total tax saving.
Enter deductions for all properties combined
Items with typical amounts are pre-filled when checked. You can override any amount.
Total Deductions
$0
Estimated Tax Saving
$0
Your Marginal Tax Rate
—
Check off the deductions that apply to your property to see your estimated tax saving.
What Can I Claim on My Investment Property?
The ATO allows you to claim deductions for expenses incurred in earning rental income. The key rule is that the expense must be directly related to producing rental income. You cannot claim expenses that are private or capital in nature — capital improvements are depreciated over time rather than claimed immediately. If a property is only rented for part of the year, deductions must be apportioned accordingly.
Common Deductions Most Investors Miss
Many investors leave money on the table by overlooking legitimate deductions:
- Depreciation — Many investors never get a depreciation schedule prepared, missing out on thousands of dollars in non-cash deductions each year. A quantity surveyor can identify building allowance (Division 43) and plant & equipment (Division 40) deductions.
- Travel to property — You can claim the cost of travelling to your investment property for inspections, maintenance, or collecting rent.
- Borrowing costs — Loan establishment fees, LMI, and other borrowing costs can be amortised and claimed over five years or the term of the loan (whichever is shorter).
- Landlord insurance — Both building insurance and landlord insurance (covering tenant damage, loss of rent) are fully deductible.
- Tax agent fees — The portion of your tax return preparation that relates to your rental property schedule is a legitimate deduction.
Repairs vs Improvements
Understanding the difference between repairs and improvements is critical for maximising deductions. Repairs — restoring something to its original condition — are immediately deductible in the year incurred. Replacing a broken tap, patching a hole in a wall, or fixing a leaking roof are all repairs. Improvements— making something better, bigger, or of a higher quality than the original — are capital works and must be depreciated over time (typically 40 years for building construction at 2.5% per year). Replacing an old kitchen with a brand new one is an improvement, while repairing a benchtop is a repair.
Disclaimer: This checklist is for general guidance only and does not constitute financial or tax advice. Tax rules change frequently and individual circumstances vary. Consult a registered tax agent for advice specific to your situation.
Related Tax Guides
See how ATO rental-property data matching works and what records investors should keep before lodging deductions.
Stop Hunting for Receipts at Tax Time
PropBoss automatically categorises your expenses for tax time — no more hunting for receipts. Every bill, bank transaction, and depreciation claim is tracked and ready for your accountant.