Property investors claimed almost $25 billion in rental deductions last year, making an average claim of about $19,250 each.
Of the 1.3 million people who lodged a rental claim, 150,000 were newcomers making their first tax return since becoming a property investor.
According to the ATO, its hit rate for follow-ups to first-time property investors is about 75 per cent -- so check your letterbox.
The biggest area for mistakes is between what can be claimed immediately and what has to be depreciated over many years.
Immediate expense claims include:
Interest on a loan
Repairs from new damage
Maintenance of existing services and appliances
Expenses that must be claimed over several years include:
Any damage that existed at purchase
Renovations and improvements
Replacement of any fixture or appliance
"One of the biggest mistakes people make is when they use a line of credit to buy a property and then draw on it further to buy a car or a holiday," H&R Block regional director Frank Brass said. "Then they go and claim the total interest against their property investment."
Expenses that can never be claimed include:
Interest on a loan for property not genuinely for rent
Travel expenses to the property when it is a personal trip
Stamp duty on property transfer
Click here to read about The common mistakes made when preparing a tax depreciation and for tips on maximising your depreciation allowances!
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
east victoria park
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out