Which Property Investment Fees Are Tax Deductible:

Every year at tax time I wonder whether property investors are the only people in Australia who look forward to submitting their tax return!

That’s because property investment not only provides us with the ability to create long-term wealth through the purchase of income-producing assets, but our tax system allows us to claim legitimate expenses along the way. But it’s important to understand which fees and charges are tax deductible and which ones will just get the tax office offside, which is obviously not something that you ever want to do.

When investors purchase a property there are a number of expenses that must be paid at the outset. These include things like bank fees, body corporate fees, conveyancing costs, stamp duty and possibly lenders mortgage insurance. However all these costs need not leave the avid investor completely out of pocket. That’s because with a little tax knowledge and some professional advice, you may be able to claim some of the expenses associated related to your purchase and most ongoing costs associated in the process of generating income from your investment property as tax deductions.