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7 Investment Property Expenses You Must Not Claim

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Unfortunately, as an investment property owner there are a few expenses you can’t claim as a tax deduction against your rental property, contact your STS Accountant for more information on these 7 areas:

#1 Travel expenses

As of 1 July 2017, you are no longer entitled to a deduction for travel expenses relating to your residential rental property.
Travel expenses include the costs of travel to inspect, maintain or collect rent for the property, and costs of meals and accommodation related to such travel unless you are using the property to operate a business.

#2 Costs related to the purchase or sale of the property

You cannot claim a deduction for the costs of acquiring or disposing of your rental property.
These expenses include:
• fees on bank guarantees in lieu of deposits
• the purchase cost of the property
• conveyancing costs
• advertising expenses
• fees of a buyer’s agent you engage to find you a suitable rental property to purchase, i

#3 Expenses not incurred directly
You can’t claim expenses not actually incurred by you, such as water or electricity usage, where the charges are borne by your tenants

#4 Costs arising from personal use
Expenses connected to your own use of a holiday home that you rent out for part of the year,

#5 Maintenance costs on non-income producing properties
You can’t claim the costs of maintaining a non-income producing property to be used as collateral for the investment loan

#6 Relocation Expenses
Expenses incurred in relocating assets between rental properties are not able to be claimed.

#7 Rental Seminars
You cannot claim expenses for rental seminars that are aimed at helping you find a rental property to invest in, including where the agent recommends a property manager free of charge as an optional or supplementary service

For further help on understanding investment property tax don’t hesitate to contact our team of expert accountants and business advisors.
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