Never Miss These 6 Commonly Overlooked Tax Deductions

Building owners often neglect some of the most recent ATO tax deductions available to them. If you desire to minimize your tax this financial year you must never leave them from the list.  The ATO has permitted owners of income-generating properties to claim ATO property depreciation deductions. An individual may claim depreciation under two categories namely capital works and plant & equipment assets. These depreciation claims can significantly help the building owners in reducing their tax liability and they will pay less tax. The ideal way to make sure that you enhance your depreciation claim is to prepare a tax depreciation schedule.

Here are some of the most ignored tax deductions:

1. Borrowing expenditures:

When you buy your investment property first the borrowing expenditures included can be claimed as tax deductions. These expenditures may include title search fees, mortgage documents costs, loan establishment expenses, etc. If your entire borrowing expenditure exceeds $100 or less, you can claim a complete deduction in the income year they are incurred.

2. Property management fees:

If you procure a real estate to handle your investment property, you may need to pay property management fees. It is worth noting that these fees remain tax-deductible and you may claim them in your yearly tax return.  If you face any difficulty in carrying out your property valuation to seek a depreciation claim, you may hire an expert for the job.

3. Legal expenditures:

ATO has specified that legal expenditures incurred while buying or selling your property are not tax-deductible. However, an investor is eligible to claim any expenditure faced while evicting a non-paying tenant.  You need to take court action due to loss of rental income or seek damages claims for harm caused by a third party on rental property.

4. Insurance:

When you claim rental income on your investment property, your insurance will also become tax-deductible. The insurances that remain tax-deductible may include private mortgage insurance, building, or content. You may engage an expert quantity surveyor to complete an ATO tax depreciation schedule.

5. Advertising expenses:

You will be allowed to claim a real estate tax deduction for the advertising expenditures. However, it will be possible if you are an agent or property manager who earns a commission and have yet to be reimbursed. It may include expenditures linked with advertising via newspapers, drops, bunting, etc.

6. Home office expenditures:

If you are working from your home, you will be allowed to claim occupancy cost as a tax deduction. It will also include expenditures of using your own computer, equipment, lighting, heating, and software, among others. But, you will not be able to get complete the main residence exemption in case your house is your main place of business.


Whenever you prepare your tax depreciation report, don’t forget to include the above expenditures. It will help in lessening your tax liability in every financial year. If you face any difficulty in preparing your tax depreciation report, you may get in touch with expert Deppro quantity surveyors. The professional quantity surveyors will prepare a schedule that will cover all deductions available throughout the lifetime of the property. It will ensure that your cash flow is maximized and remain fully tax-deductible.