ATO Tax Time - 30 June Is Fast Approaching Deductions Checklist

ATO Tax Time - 30 June Is Fast Approaching Deductions Checklist

More than one million Australians claim deductions on rental properties each year. There are many possible expenses that property investors can potentially claim against income generated from leasing out the property. It is important to remember that deductions can only be claimed for times when the property is rented or genuinely available for rent (otherwise expenses may need to be apportioned).

Expenses you may be entitled to claim as an immediate deduction:

Ο Advertising for tenants

Ο Body corporate fees and charges

Ο Council rates

Ο Water charges

Ο Land tax

Ο Cleaning

Ο Gardening and lawn mowing

Ο Pest control

Ο Insurance (building, contents, public liability)

Ο Interest expenses

Ο Property agent's fees and commission

Ο Repairs and maintenance

Ο Some legal expenses

Ο Travel to inspect the property, to collect the rent or for maintenance

 

Borrowing expenses you may be entitled to over time:

Ο Depreciation

Ο Capital works expenditure

Ο Stamp duty charged on the mortgage

Ο  Loan establishment fees

Ο Title search fees charged by your lender

Ο Costs (incl. solicitors' fees) for preparing/filing mortgage documents

Ο Mortgage broker fees

Ο Fees for a valuation required for loan approval

Ο Lender's mortgage insurance

Get prepared now to make sure that you have all your invoices and paperwork ready for tax time.  We always recommend that you speak with your accountant to ensure that you are maximising your tax return.