With any form of investment there will be paperwork, tax forms and returns to be completed and investment property is no different.

It is good business practice to have a pre-tax visit to obtain important information on how to maximise the return on your investment property. These are a few questions that you should be asking your accountant:

• Are you entitled to a tax rebate?
• Do you need to spend money on your investment?
• Is your paperwork in order?

The most common items claimed include council rates, water charges, insurance, loan interest, property agent fees, repairs and maintenance.

Less commonly claimed include legal fees, pest control and cleaning expenses.

Bradley Beer, the managing director at BMT tax depreciation specialists, estimated between 70 and 80 per cent of investors were not getting the maximum return on depreciation claims.

“The average first year of deductions for a first full year of owning a property is about $10,000 and over 10 years it’s about $7000 per year,” Mr Beer said.

He described depreciation claims as a way of having the value of wear and tear on the structure of your property accommodated by the tax office.

“If you bought a house 10 years ago and five years ago spent $100,000 on a renovation, there are things in there that will still be depreciating, even if you have missed the first five years,” Mr Beer said.

Claiming everything you are entitled to at tax time is one of the many ways to increase the profitability of your property portfolio. This is a great opportunity to review the performance of your property to ensure you are getting the most out of it.

Please note: the information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. We strongly recommend that you obtain independent advice before you act on the content.