Are you claiming all tax deductible items for your Rental Property?

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.

  • Advertising for tenants
  • bank fees
  • body corporate fees
  • cleaning
  • council rates
  • electricity, gas & water fees
  • gardening and lawn mowing
  • in-house audio and video service charges
  • insurance (building, contents & public liability)
  • interests on loan
  • land tax
  • lease documents expenses ( preparation, registration, stamp duty)
  • legal expenses (excluding acquisition costs and borrowing costs)
  • mortgage discharge expenses
  • pest control
  • property agent fees and commission
  • quantity surveyor’s fee
  • costs incurred in relocating tenants into temporary accommodation if the property is unfit to occupy for a period of time
  • repairs and maintenance
  • secretarial and bookkeeping fees
  • security patrol fees
  • servicing costs
  • stationery and postage
  • telephone calls for rental

Expenses for which cannot claim a deduction

  • acquisition and disposal costs of the property.
  • the purchase cost of the property
  • conveyancing cost and advertising cost
  • expenses not actually incurred by you, such as water or electricity fee paid by the tenants.
  • expenses that are not related to the rental property.

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.

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