Tax Tips: Owning A Rental Property

Did you know that any property you own and rent out in any capacity is required to be included in your tax return?

As tax return specialists, we’ve compiled a few basic lists to help you clearly identify what you can immediately claim, what you can claim over a period of time, and items which are not able to be claimed as a tax deduction.

You can claim the following as immediate tax deductions:
• Loan interest
• Rates & taxes, including water &
council rates & land tax
• Real Estate Agent management fees
• Body corporate fees
• Insurance
• Cleaning & gardening
• Repairs & Maintenance (some special
rules apply here)

You can claim tax deductions over several years for things such as:
• Building improvement costs
• Borrowing costs
• Fixtures & fittings

Items you cannot claim as a tax deduction:
• Buying & Selling Costs
• Expenses not actually incurred by you, such as water or electricity usage charges borne by your tenants
• Expenses of a private nature – ie expenses relating to your own home
• Travel expense to inspect a property before you buy it
• Expenses for rental seminars about helping you to find a rental property to invest in

We understand every person’s situation is unique, so if you have any questions about this information please call us – we’re more than happy to help.
Call us today:
Torquay (03) 5261 2262
Winchelsea (03) 5267 2673