Industries · Property Investors
Tax support for residential property investors.
One rental or several, the claims depend on records, loan structure and timing. SML prepares rental schedules properly and helps you plan for the sale before it happens.
Where the money leaks
The pressure points we see in property investors.
- Interest claimed on a loan that was partly redrawn for private use.
- Repairs and improvements treated the same way, when the tax rules treat them very differently.
- No depreciation schedule, so years of capital works deductions are missed.
- No idea what capital gains tax will look like when the property is sold.
- Records spread across agents, banks and old emails.
What SML handles
Done together, with the records behind it.
Rental property schedules
Income and expenses for each property prepared from agent statements and loan records.
Loan & interest review
Mixed-purpose loans split so only the investment portion is claimed.
Repairs vs improvements
Each cost classified correctly as an immediate deduction or a capital item.
Depreciation
Capital works and eligible depreciation claimed from a proper schedule.
CGT planning
Estimated capital gains tax and main residence questions worked through before you sell.
In practice
Where rental property claims most often go wrong
Interest follows the use of the money, not the security. If part of an investment loan was redrawn for a car, a holiday or your own home, the interest on that part is not deductible, even though the loan is secured against the rental. This is one of the most common adjustments the ATO makes to rental claims, and it compounds every year the loan is left mixed.
Depreciation has two halves. Capital works deductions on the building itself can often be claimed for decades, which is why a quantity surveyor's schedule usually pays for itself. Plant and equipment is narrower: for residential properties, previously used items in a property bought after 9 May 2017 generally cannot be depreciated by the new owner. Repairs that restore something are usually deductible straight away; improvements and initial repairs on purchase are capital.
Capital gains tax is decided long before the sale. Holding period, ownership split, whether the property was ever your home, and your residency status all change the result. Individuals who hold an asset for more than 12 months generally receive a 50% discount on the gain, and the main residence rules can reduce or remove it — but foreign residents are generally excluded from the main residence exemption. Records of purchase costs, stamp duty and improvements need to be kept for the whole ownership period and beyond.
The rhythm
What the year looks like.
Dates and thresholds change. We work to the current ATO requirements for your lodgement cycle rather than a generic calendar.
- On purchase
- Settlement statement, stamp duty and loan documents filed — they set the cost base for CGT.
- Each year
- Agent statements, interest summaries and receipts gathered for the rental schedule.
- Before 30th June
- Repairs, prepaid interest and other timing decisions reviewed while they can still be made.
- Before you sell
- Capital gains estimate and main residence questions worked through, not after contracts are signed.
Free self-check · 3 minutes
Holding an investment property — are the loan and depreciation claims actually right?
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Start the free checkCommon questions
Asked most often by property investors operators.
Can I claim interest on my investment property loan?
Yes, for the portion of the loan used to buy or hold the rental property. If part of the loan was redrawn for private purposes, the interest on that part is not deductible.
Is a depreciation schedule worth getting?
Usually. Capital works deductions on the building can run for many years. For residential properties, previously used plant and equipment in properties bought after 9 May 2017 is generally not depreciable, so the schedule tells you exactly what can be claimed.
How much capital gains tax will I pay when I sell?
It depends on the holding period, ownership, whether the property was ever your home and your residency status. Individuals holding for over 12 months generally receive a 50% discount, while foreign residents are generally excluded from the main residence exemption. An estimate before you sell is worth having.
From the Knowledge Hub
Guides worth reading before we talk.
Rental Property Records for Business Owners
Read guideDepreciation and Asset Write-Off Basics
Read guideInvestment Income Record Keeping
Read guideTax Planning Meeting Preparation
Read guideNext step
Talk to someone who knows your industry's numbers.
Book a conversation with SML and bring the issue you want fixed first — we'll shape the bookkeeping, BAS, payroll and tax around how your business actually runs.
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