Borrowing expenses are one of the most commonly missed deductions for property investors, so we’ve made it simple to capture and claim everything you’re entitled to.
Once your bank feeds are connected, you can add borrowing expenses directly from your loan in seconds. From there, TaxTank will automatically:
Spread the deduction over 5 years from the loan start date
Include the amounts in your property depreciation schedule
Keep everything aligned with your tax position in real time
What are borrowing expenses?
Borrowing expenses are costs associated with setting up or refinancing a loan used to produce income.
Common examples include:
Loan establishment or application fees
Mortgage broker fees
Valuation fees required by the lender
Mortgage registration and title search fees
Legal fees relating to loan setup
Lender’s mortgage insurance (LMI)
💡 If the cost relates to getting the loan in place — not owning or maintaining the property — it’s likely a borrowing expense.
How to add borrowing expenses
From Bank Feeds, select the relevant loan account
Open the Loan Details tab
Enter your borrowing expenses, and select “Reset Loan”
That’s it — you’re done.
TaxTank will automatically calculate and allocate the deduction across each financial year which you will see in the 'Depreciation' tab of each property.
What happens if I refinance?
If you refinance your loan:
You’ll see a “Payout” button once all bank transactions are allocated
When selected, TaxTank will:
Write off any remaining borrowing expenses in that year
Mark the loan as inactive
💡 This ensures you don’t miss what is often one of the most overlooked deductions.
Got bank transactions to allocate?
Borrowing expenses will often appear in your bank feed when the loan is set up.
If you see these transactions, allocate them to category:
👉 “Capital, Buying & Setup Costs (Clearing)”
This will:
Record the transaction against the property
Keep everything organised in one place
Ensure it does not get incorrectly claimed as an immediate deduction
Q&A
What’s the difference between “Capital, Buying & Setup Costs (Clearing)” and borrowing expenses?
“Capital, Buying & Setup Costs (Clearing)” is used to track transactions from your bank feed and does not impact your tax directly. Borrowing expenses are entered in the Loan Details section and are automatically spread over 5 years and included in your depreciation schedule.
What’s the difference between borrowing expenses and bank fees?
Borrowing expenses relate to setting up a loan and are claimed over 5 years. Bank fees are ongoing charges (like monthly account fees) and are immediately deductible in the year they are incurred.
Do I need to enter borrowing expenses if they’re already in my bank feed?
Yes. Allocating the bank transaction is only for tracking. You still need to add the borrowing expenses in the Loan Details section to ensure they are correctly calculated and claimed over time.
What happens if I don’t record borrowing expenses correctly?
You may miss out on deductions or claim them incorrectly. Borrowing expenses need to be spread over time, so recording them properly ensures your tax position is accurate and you're claiming every possible deduction. If your loan is less than 5 years old its always a good idea to check!
Still managing your property tax the hard way? With TaxTank, you can track income, expenses, depreciation and CGT in real time, saving you hours of hassle. Start your free trial today and see why tax has never looked this good!