What tax deductions can you claim on your rental property? Here are the current rules regarding how tax deductions can work for investment property owners. Rental property tax deductionsAccording to the ATO, landlords can only claim deductions on rental properties that are tenanted or 'genuinely available for rent'. Much of the political discussion on investment property tax deductions centres around negative gearing. Property management expensesThe costs of employing a property manager to take care of the property are tax deductible.