Property Investing Tax Tip


We have heard again recently that the ATO are going to be looking closely at claims for repairs to investment properties this year. So be careful. Remember, a repair means to restore something to the condition it was in when you bought it.

A common error made by property investors is incorrectly claiming repairs done straight after you bought it and before tenants moved in. In this case, you are ‘improving’ the property and you will have to depreciate the cost of that work.

This is the case even if the repairs were essential. You need to get this right, because it is an easy one for the ATO to check. Best to ask your accountant and claim correctly.