Property Investor

At Assuris FIG, we recognise that paying taxes on investment property is a unavoidable step in the process. It is essential to be prepared for the taxes you will be responsible for.

Property investors should be mindful of several factors when it comes to paying taxes.

Strategically managing expenses related to your property is important as it will influence the amount of taxes you will be liable for, taking into account your other sources of income and profit generated from the property.

Additionally, land tax must be taken into account, and a capital gains tax may be applicable if the property is sold.

Assuris Financial Independence Group

Maximise Your Tax Return with Better Rental Investment Property Tax Deductions

Landlords are always looking at ways to enhance the value of their properties.


As a property owner, you are always looking for ways to improve your investment and increase its value. One way to do this is through capital improvements and expenses.

Capital improvements are renovations or additions that increase the value of your property. These can be things like adding a new bathroom, renovating the kitchen, or building a deck. These types of rental property tax deductions can take upto 40 years in the form of deductions for capital works.

Expenses for investment property can also add value to your property. These expenses can include things like repairing cracks on the exterior of your home, hiring a landscaper to maintain your yard, or replacing broken tiles on the roof. These expenses can be claimed and are investment property tax deductions.

Some expenses are non deductable for tax purposes, like purchasing second hand appliances. This is when it can get complicated.

Making capital improvements and investing in your property can be a great way to increase its value and can make your property more attractive to potential buyers too.

Do your research first.


As an investor, one of the key considerations when assessing a residential rental property is its impact on your cash flow.

  • A positive cash flow situation means that the income you generate from the property covers all of your associated costs (mortgage, insurance, taxes, etc.), leaving you with extra money in your pocket.
  • Conversely, a negative cash flow situation means that your income is not enough to cover all of your associated costs, and you are actually losing money each month.

While a positive cash flow could be an ideal situation, it is not always possible, especially when you are first starting out. In fact, it is not uncommon for new investors to experience a period of negative cash flow known as negative gearing.

So, if you're considering purchasing a property as an investment, it's important to understand how it will impact your cash flow. Residential rental properties can be a great source of income, but they also come with a number of expenses that you'll need to account for including council rates, land tax, body corporate fees and maintenance costs, to name a few.

Before purchasing a rental property, be sure to do your research and understand all of the associated costs. Gaining an understanding of the facts and the requirements involved in purchasing a rental property can assist you in making an informed decision about whether it is the right choice for you, thus helping to avoid potential anxieties in the future.

Accurate records provide a reliable source of information for decision-making.


As an investment property owner, it's important to keep accurate records of eligible property expenses you are entitled to claim for tax depreciation deductions, and declare income.

Failure to do so could result in penalties, and remember, you may also be liable for capital gains tax.

If you are looking to buy, get the right tax advice from the beginning to boost your tax savings.

Income from renting out property is considered taxable income. This means that you will need to declare it on your annual tax return. You may also be eligible claim a tax deduction, such as expenses related to the upkeep of the property like fees for the property agent to manage the property. Remember, some expenses you can’t claim and are not tax-deductible, so be careful.

Get professional advice when it comes time to sell your investment property, this is a taxable event, and you may also be subject to capital gains tax. This is a tax on the profit you make.

Keep in mind that the rules and regulations vary from time to time, so it's important to consult with a qualified tax accountant in order to ensure compliance.

Understand your options to make better decisions.


If you're considering owning investment properties in a family trust, there are a few things you should know.

Trusts can be an excellent way to protect your assets and manage your finances, but they also come with a few potential drawbacks.

Additionally, it's important to understand the tax implications of owning property in a trust. For example, the responsibility of paying capital gains tax - if any, on any profits you make from selling the property.

Assuris FIG accountants can help with investment tax returns and tax planning so you understand your options and are empowered to make better decisions.

Your Investment Property Tax Return Strategy

Capital Improvement vs Expenses: Investment Property Tax Deductions You can Claim

Owning a Rental Property Investment and the Impact on your Cash Flow

Rental Property Deductions and the Importance of Keeping Accurate Records

Family Trusts Used to Purchase the Property