Did you know how many expenses you can claim if you own a rental property?
Many people are unaware of the full range of deductions available to them – and they miss out on a bigger tax refund.
To ensure you are making a correct claim on your next tax return, we’ve listed 27 items that you should keep a record of:
“How does it work?”
If you own a rental property that you receive an income from, you can claim any expense associated with earning that income.
For example: if you pay insurance on your rental property, this is considered an expense you incur to earn income from the property. If you did not own the property you would not incur the expense.
If you pre-pay a rental property expense, such as insurance, that covers a period of 12 months or less, and the period ends on or before June 30, you can claim an immediate deduction. A prepayment that does not meet these two criteria and is $1,000 or more may have to be spread out over two or more years.
1.Advertising for tenants
3.Body corporate fees
6.Electricity and gas
7.Gardening and lawn mowing
8.In-house audio/video service charges
9.Insurance – building, contents, public liability
10.Interest on loans
13.Lease costs – preparation, registration, stamp duty
14.Mortgage discharge expenses
16.Property agent’s fees and commissions
18.Quantity surveyor’s fees
19.Repairs and maintenance
20.Secretarial and bookkeeping fees
21.Security patrol fees
22.Servicing costs e.g. servicing a water system
23.Stationery and postage
24.Telephone calls and rental
26.Travel and car expenses – rent collection, inspection of property, maintenance of property
For more information or for help with your tax return, contact your Etax Local Accountant