Some taxpayers appear to be claiming the same investment property related expenses that they have always claimed in their tax return. However, there have been a number of changes over the past few years the main two are:
In the past you were able to claim a tax deduction for travel expenses to inspect your investment property. This expenditure is no longer tax deductible.
In previous years you could buy an investment property and claim depreciation on the various fixtures and fittings that were already in the investment property, such as, kitchen appliances and carpet. The legislation was changed in July 2017 and now you can only depreciate new assets purchased and installed in the property.
Be mindful that the ATO is targeting taxpayers with investment properties as they believe innocently or otherwise they are over-claiming property deductions. The ATO believes that one in ten investors are claiming too much hence their focus on this sector.
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The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.