Rental Property Deductions

With tax time 2019 upon us, enquiry in relation to tax deductions in relation to rental property are becoming more frequent. Ensure you are claiming all the available tax deductible outgoings for your investment property this year. Our tax consultants will prompt you on the type of deductions they expect to be provided information on. As a guide we have provided you with a list of common rental property deductions available to investors.

  • Advertising for tenants
  • Bank charges
  • Body corporate or strata levy fees
  • Cleaning costs
  • Council rates
  • Depreciation
  • Electricity & gas
  • Gardening and lawn mowing services
  • Inhouse audio or video service charges
  • Insurance (building, contents and public liability)
  • Interest and borrowing expenses
  • Land tax
  • Letting fees
  • Pest control services
  • Property agent’s fees & commission
  • Repairs & maintenance
  • Secretarial and bookkeeping fees
  • Security patrol fees
  • Stationery & postage costs
  • Tax advice & preparation services
  • Telephone
  • Water rates

The above comprehensive list covers the most common deduction opportunities you will have access to in reducing your taxable rental income. Tax law can be complicated, for this reason you need to be aware that there are certain situations and regulations that place limitations to these deductions, such as expenses of a:

  • Capital nature- depreciation may apply to these items
  • Private nature
  • Relating to the acquisition or disposal of the property
  • You did not incur or pay directly.
  • Relate to a period when the property was not earning rent or at the very least available for lease
  • Depreciation for pre-existing plant & equipment for properties purchased after 9 May 2017.

Best advice we can give you is to keep all your receipts, invoices, bills, diary records of property history and bank or loan statements in relation to your investment property. With this we can review your circumstances, inform you of the tax deductible expenses you may be entitled to and ultimately you will comply with ATO’s substantiation requirements.

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