Investment property: claim this, not that

Full text of the video

This video has no voice-over. This is everything shown on screen, in order.

1. Investment PropertyClaim these. Not those.
2. You Can ClaimLoan interestCouncil rates and land taxAgent feesRepairs and maintenance
3. YOU CAN'TTravel to your residential rentalSince 1 July 2017most investors
4. CAREFULDamage that was there when you boughtFixing it is capitalnot an instant deduction
5. Capital Works2.5%a year over 40 yearsgenerally (some 4%)
6. Repair or improvement? Ask before you claim.

Sources

• ATO - Common rental property expenses

  council rates, water charges, land tax

  interest expenses

  property agent's fees and commission

  repairs and maintenance

• ATO - Rental properties and travel expenses

  From 1 July 2017 you can't claim any deductions for the cost of travel you incur relating to your residential rental property unless you are either:

  Generally, owning one or several rental properties will not be considered being in the business of letting rental properties.

• ATO - Rental repair and maintenance expenses

  Any repairs for remedying damage that existed when you acquired the property are initial repairs and are capital in nature.

  An improvement is anything that makes part of the property better, more valuable, more desirable or changes the character of the item that is being worked on (for example, a renovation).

• ATO - Rental capital expenses

  The rate of deduction for these capital works is generally 2.5% or 4% per year, spread over a period of 40 or 25 years respectively.