Got an investment property? Don’t make this tax mistake
Watch the PoliceTax investment property video and learn why repairs, improvements and private use need different tax treatment and supporting records.
What this video means at tax time
Three checks before claiming a property expense
Classify the expense before entering it in the return.
Repair or improvement?
Restoring something damaged through rental use may be treated differently from replacing an entire asset or improving the property. Initial repairs can also require separate treatment.
Rental or private use?
If the property was available for rent for only part of the year, used privately, or rented below commercial rates, expenses may need to be apportioned.
Now or over time?
Some eligible costs may be claimed immediately, while depreciating assets, capital works and borrowing costs can follow different timing rules.
Records to keep
- Invoices and receipts
- Loan and settlement records
- Dates available for rent
- Photos and descriptions of work completed
Source: ATO property and land guidance.
Frequently asked questions
Are all investment property repairs immediately deductible?
No. The result depends on what was repaired, why the work was needed and whether it was a repair, an initial repair, a replacement or an improvement.
Do I need records after I claim the expense?
Yes. Keep invoices and supporting property records, including capital records that may be needed when you later sell the property.
Related PoliceTax resources
Want us to check your circumstances?
These videos are general information. PoliceTax can review your records and tax position before you lodge.