questpaintings
New member
Owning a rental property comes with the responsibility of regular maintenance and repairs. Understanding what you can — and can’t — claim as a tax deduction can save you from costly mistakes. Let’s put it simply.
What you can claim
You can claim an immediate deduction for repairs that restore your property to its original condition. This includes repairs that have been made due to wear and tear during the rental period.
Here are some examples:
What you can’t claim
Not every expense is considered a repair. Some expenses are considered capital improvements, meaning they increase the value of the property rather than restoring it.
You can't claim a deduction for:
These costs fall under capital works and are claimed over many years through depreciation.
Professional tips for property owners
When it comes to Claiming Rental Property Repairs: What You Can & Can’t Claim (The Ultimate Guide), understanding the difference between repairs and improvements helps you stay compliant and maximise your returns. A little record-keeping today can lead to bigger savings at tax time tomorrow.
What you can claimYou can claim an immediate deduction for repairs that restore your property to its original condition. This includes repairs that have been made due to wear and tear during the rental period.
Here are some examples:
- Replacing broken tiles or leaking faucets
- Repairing fences, windows, or doors
- Fixing electrical faults or plumbing leaks
- Repainting walls after a tenant has damaged them
What you can’t claimNot every expense is considered a repair. Some expenses are considered capital improvements, meaning they increase the value of the property rather than restoring it.
You can't claim a deduction for:
- Adding new rooms or extensions
- Installing new flooring or kitchen upgrades
- Major structural renovations
These costs fall under capital works and are claimed over many years through depreciation.
Professional tips for property owners- Keep detailed invoices and receipts for each repair.
- Separate repair costs from improvement costs for easier tax filing.
- If you're unsure, consult a property tax expert or accountant to avoid mistakes.
When it comes to Claiming Rental Property Repairs: What You Can & Can’t Claim (The Ultimate Guide), understanding the difference between repairs and improvements helps you stay compliant and maximise your returns. A little record-keeping today can lead to bigger savings at tax time tomorrow.
