Tax time is always complicated, especially for professionals in the real estate industry. From deducting vehicle expenses to office supplies and professional development costs, there are numerous ways to reduce your taxable income. In this article, we've gathered some helpful tips from various sources to guide you through the process and ensure you're taking full advantage of the deductions available to you.
While we hope to provide accurate and useful information, it's important to mention that (obviously) we are not a professional tax agency! The advice and tips shared here are meant to give you a general idea of what you might be able to claim. For personalised advice tailored to your specific situation, we recommend consulting with a qualified tax professional. They can help you navigate the complexities of the tax system and maximise your deductions.
Can I claim this item as a tax deduction?
You can claim deductions for expenses incurred during the financial year that directly contribute to earning an income. To claim a deduction you have to meet three sets of criteria. We’ve put together a handy set of questions to ask yourself about whether you can claim something as a deduction:
Did you spend the money and weren't reimbursed?
Does it directly relate to earning your income?
Do you have a record to prove it?
You can’t claim a deduction if:
You don't keep records of your work-related expenses.
Someone else (such as an employer) pays for the expense or reimburses you for it.
What can be deducted?
If you’re an agent or property manager who is entitled to earn a commission, you can claim a variety of deductions, including:
Advertising expenses (eg: newspapers, letterbox drops, signage and bunting).
Expenses for a car if you need to drive for work-related purposes, like open houses and inspections. Make sure you keep a detailed logbook to track these expenses.
Gifts to tenants, owners and suppliers like hampers, flowers, or a bottle of alcohol.
Marketing equipment like digital cameras for photographing properties.
The cost of buying, maintaining, and cleaning branded work attire.
Office Supplies like stationery or printer ink.
Self-education, training, or conferences directly connected to your field of work, such as obtaining a real estate agent licence or certificate.
What can’t I claim?
Some work expenses aren't deductible, including:
Self-education and training not immediately relevant to your area of work.
Office clothing such as business suits or comfortable shoes, even if you only wear them to work.
Even if you discuss business, tickets to the theatre, movies, plays, athletic events, amusement parks, or vacation certificates are not eligible for reimbursement.
If your company supplies it, any tools or equipment, such as a laptop or camera.
It’s important that you maintain accurate and detailed records throughout the year. Save all receipts and document expenses related to your business activities. Try using a digital app or software to track your expenses and make it easier to organise and access your records when it’s time to file your return.