Rental properties – facts about claiming tax deductions

2019-04-02T10:06:53+11:005 October, 2018|
  • hands exchanging keys outside of house

Getting your deductions correct can make a BIG difference to your tax refund!

There are deductions available relating to your rental property, however, they are only available for the period your property is rented or ‘available for rent’.

Deducting expenses on your tax return can boost your tax refund and leave more rental income in your pocket.

To ensure the correct deductions are made you should talk to your accountant.

Some of the claimable expenses are:

  • Professional fees – accounting, agents and legal fees.
  • Finance and borrowing expenses – bank charges, borrowing expenses and interest on your loan
  • Insurances – insurance premiums and mortgage insurance.
  • Maintenance and repair costs the rental property – some repairs and maintenance.
  • Building write-off and depreciation
  • Other Costs – land tax, Council and water rates, owner’s corporation fees and administrative fees.

You should make sure you keep documentation records relating to the expenses you claim, including bank statements, rates notices, tax invoices, insurance documents, depreciation schedules and anything else you feel would back up expense claims. These documents may need to be provided to the ATO in the event you are selected for audit of your taxation affairs.

Note: The above is only recommended as a guide and not intended to constitute advice. We recommend confirming any expenses you wish to claim with your accountant or the ATO.

Article by Macquarie Business Accountants

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