Investment Deductions

Section 1 of 2

Rental Property

Interest, repairs, depreciation, and management fees

Interest on loans used to purchase or improve your rental property.

Example

Paying $20,000/year in interest on your investment property loan — claimable against rental income.

The loan must be for the rental property, not your home

Fixing things that are broken or worn — not improvements.

Example

Replaced a broken tap for $200 — claimable. Renovated the whole bathroom for $15,000 — that's a capital improvement (depreciate instead).

Repairs = claim now. Improvements = depreciate over time.

Fees paid to a property manager to look after your rental.

Example

Your property manager charges 7% of rent collected = ~$2,000/year — fully claimable.

Decline in value of the building and assets inside (carpet, appliances, blinds).

Example

A quantity surveyor finds $8,000/year in depreciation on your 10-year-old investment unit. That's $8,000 off your taxable income.

Get a depreciation schedule from a qualified quantity surveyor

Section 2 of 2

Management fees and interest on investment loans

Fees paid to manage your share portfolio or managed fund.

Example

Your financial adviser charges $1,500/year to manage your share portfolio — claimable.

Interest on money borrowed to buy shares or other investments.

Example

Borrowed $50,000 to invest in shares, paying $2,500 interest — claimable against investment income.

The loan must be used to produce assessable income