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5 Hidden Tax Claims For Investment Properties

Calculating TaxWith so many rules and regulations involved in investment property ownership, people often overlook the potential tax claims available. Here are the top 5 most uncommon and hidden tax claims that they don’t want you to know about.

1)   Holiday Rental Assets

Investors who own a holiday rental property may need to purchase assets so that guests are able to enjoy their stay. Industry standards dictate that kitchen cutlery and crockery may need to be provided, as well as adequate bathing amenities.

Said items can cost an investor around $285 – which can be claimed, in full, in the first year of financial deductions.

2)   Bathroom Items

Bathroom accessories are often considered modest additions to an investment property. These additions can often be overlooked, yet investors may be able to claim around $125 for said items.

Deductions can be made on furnishings such as toilet brush holders, shower caddies, soap holder and towel railings. Assets under $300 dollars in this domain can be claimed in full, as an immediate deduction within the first financial year.

3)   Garden Assets

Most investors of property seem to think that deductions are only for assets that are contained inside the property’s structure. This isn’t true however, as outdoor assets can attract some valuable deductions along the way.

Materials such as artificial grass or turf matting are considered a removable plant and equipment accessory. If an investor spends a substantial amount such as $900 in its instalment, they may be able to claim as much as $180 in deductions.

Said deductions are eligible within the first year of financial tax claims, and the rest can be collected cumulatively over the first five years.

4)   Home Automation Setups

Many investors choose to go modern, by installing a home automation system. This is a big draw for many potential renters and holiday-makers these days – improving market appeal drastically.

These kinds of improvements are also a big-ticket asset for valuable tax claim deductions. An example of a first-year deduction may be around $1,270 on a system costing around $6,300. This will add up to cumulative deductions of around $4,300 over the first five years.

5)   Environmentally Friendly Assets

Many investors choose to upgrade their properties with energy efficient assets such as solar-powered generators. People who do this will not only save money on energy bills, but also be able to claim back a considerable tax benefit.

Investors who invest – for example, $5,250 on a solar panel system, will see first year deductions of $525. For the next five years, they will be able to claim $2,150 in cumulative deductions.