Maximising Your Investment: Top Tax Deductions for Landlords
As a landlord, you're not just providing a home for your tenants but also running a business. And, like any business, there are expenses involved. The good news is that many of these expenses are tax-deductible. Mitchell Wilson, the experienced property manager at Wilproperty, shares his insights on the top tax deductions landlords should be claiming.
Interest: If you have a mortgage on your rental property, the interest you pay is one of the most significant tax deductions you can claim. This also extends to interest on loans used for renovations or improvements.
Repairs and Maintenance: Any costs incurred for repairing and maintaining your rental property are tax-deductible. This includes everything from fixing a leaky tap to repainting the walls.
Insurance: Any insurance premiums you pay for your rental property, including building, contents, and landlord insurance, are tax-deductible.
Property Management Fees: If you engage a property management company like Wilproperty to manage your rental property, your fees are tax-deductible.
Council Rates, Water Rates, and Strata Levies: As a landlord, you're responsible for various ongoing costs associated with your property. These can include council rates, which fund local services and infrastructure, water rates, which cover the cost of water supply and usage, and strata levies, which contribute to the upkeep of common areas in strata-titled properties. These costs are all tax-deductible.
Travel Expenses: If you need to travel to inspect your property or conduct maintenance, these travel expenses can be claimed as tax deductions. This can include fuel, flights, accommodation, and meals, depending on the circumstances and distance travelled.
Advertising for Tenants: If you advertise to find new tenants for your property, these advertising costs are tax-deductible. This can include online listings, print advertisements, signage, and the letting fee for securing a tenant.
Remember, tax laws can be complex and change frequently. It's always a good idea to consult with a tax professional to ensure you're claiming all the deductions you're entitled to. And if you need advice on managing your rental property effectively, don't hesitate to contact us at Wilproperty.
Towards the end of the financial year, it's also worth considering the benefits of a depreciation schedule. Over time, the fixtures and fittings in your property, such as appliances, carpets, and blinds, depreciate in value. You can claim this depreciation as a tax deduction.
Choosing the right property manager is crucial to the success of your investment. At Wilproperty, we pride ourselves on our local knowledge, experience, and commitment to landlords and tenants.
Contact us today to see how we can help manage your property investment on Sydney's Northern Beaches.