26 Critical Tax Deductions for your rental property

Do 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:

  1. Advertising for tenants
  2. Bank charges
  3. Body corporate fees
  4. Cleaning
  5. Council rates
  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
  11. Land tax
  12. Legal expenses
  13. Lease costs – preparation, registration, stamp duty
  14. Mortgage discharge expenses
  15. Pest control
  16. Property agent’s fees and commissions
  17. Capital Works
  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
  25. Tax-related expenses
  26. 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.

Disclaimer: This information from reputable and published sources is intended to help with your business planning. The material is general and may not be suited to all circumstances. You should seek appropriate professional and legal advice before commencing any business or investment venture as overtime legislative and economic environments change. TSI Accounting takes no responsibility for the accuracy of this material or the decisions of the user of the material. In no event shall TSI Accounting be liable for any damages whatsoever arising out of the use of, or inability to use.