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 for you to check before the end of the year:
- Advertising for tenants
- Bank charges
- Body corporate fees
- Council rates
- Electricity and gas
- Gardening and lawn mowing
- In-house audio/video service charges
- Insurance - building, contents, public liability
- Interest on loans
- Land tax
- Legal expenses
- Lease costs - preparation, registration, stamp duty
- Mortgage discharge expenses
- Pest control
- Property agent’s fees and commissions
- Capital Works (covered in more detail on the next newsletter)
- Quantity surveyor’s fees
- Repairs and maintenance
- Secretarial and bookkeeping fees
- Security patrol fees
- Servicing costs e.g. servicing a water system
- Stationery and postage
- Telephone calls and rental
- Tax-related expenses
- Travel and car expenses - rent collection, inspection of property, maintenance of property
- Water charges
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 prepay 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.
Do you have a rental property? Have you been claiming all of the deductions you were entitled to? Tell us you thoughts over on facebook or if you prefer, email the team on email@example.com.