Rental Property tax deductions

If you have an investment property or are planning to purchase one, you need to understand the tax obligation on which items you entitled to claim or which one couldn’t. We will show you the rental property tax implication on your tax return.

Rental Income

Rental income is the full amount of rent and associated payment that you have received when you rent out your property. You must include your share of the full amount of rent you earn in your tax return.

The rental income might include the rental bond money and the insurance payout as if the insurance payment to compensate for your loss of rental income.

Any amount received from a tenant to cover the repairing cost and government rebate also need to include in the rental income.

Rental Expenses

You can calim a deduction for certain expenses you incur for the period your property is rented or is available for rent.

Expenses for which cannot claim a deduction

The travel expenses and the second hand depreciating assets related to the residential property are not allowed to claim from 1 July 2017.

Keeping records for rental properties.

You need to ensure that you have to keep invoices, receipts and bank statements for all property expenditure, and the proof that the property is available for rent. If you are not sure what kind of expenses you can claim, keep the receipt and our team in eFirm ensure that we claim all the allowable deduction and rebate for your tax return preparation.