More than one million Australians claim deductions on rental properties each year.
There are many possible expenses that property investors can potentially claim against income generated from leasing out the property. It is important to remember that deductions can only be claimed for times when the property is rented or genuinely available for rent (otherwise expenses may need to be apportioned).
Expenses you may be entitled to claim as an immediate deduction:
Advertising for tenants
Body corporate fees and charges
Council rates
Water rates and charges
Land tax
Cleaning
Gardening and lawn mowing
Pest control
Insurance (building, contents, public liability)
Interest expenses
Property agent’s fees and commission
Repairs and maintenance
Some legal expenses
Travel to inspect the property, to collect the rent or for maintenance
Borrowing expenses you may be entitled to deduct over time:
Depreciation
Capital works expenditure
Stamp duty charged on the mortgage
Loan establishment fees
Title search fees charged by your lender
Costs (incl. solicitors’ fees) for preparing/ filing mortgage documents
Mortgage broker fees
Fees for a valuation required for loan approval
Lender’s mortgage insurance
Get prepared now to make sure that you have all your invoices and paperwork ready for tax time. We always recommend that you speak with your accountant to ensure that you are maximising your tax return.
IMPORTANT: This is not advice. Clients should not act solely based on the material contained in this post. Items herein are general comments only and do not constitute or convey advice per se. Every effort is made to ensure the contents are accurate at the time of publication. Clients should seek their own independent professional advice before making any decision or taking action. We take no responsibility for any subsequent action that may arise from the use of this information. Originally published by the PPM GROUP – www.ppmgroup.com.au