We are here to help you break down rental properties and what to include in your tax return:

Income

  • The rent you received is taxable income
  • If you received rent at lower than market rate (for example you rent to 

Deductions

  • Any interest paid on a loan that was used to purchase the property can be claimed as a deduction
  • Advertising
  • Bank Charges
  • Body Corporate Fees
  • Cleaning
  • Council rates
  • Electricity and Gas
  • Gardening
  • Lawn Mowing
  • Insurance
  • Land Tax
  • Legal Expenses
  • Lease Costs
  • Pest Control
  • Property Agent Fees
  • Quantity surveyor's fees
  • Repairs and Maintenance
  • Security
  • Stationery
  • Postage
  • Telephone
  • Water Charges

You are also able to claim depreciation on any improvements made to the property, as these are capital in nature they can't be claimed in full in the first year. However they are written off over the effective life of the asset.

The building cost of the asset can be claimed as a deduction of 2.5% per year. Please note this only includes the cost of the construction of the building and does not include the land, to get the building cost you should contact a quantity surveyor such as BMT Tax Depreciation. An important note when claiming the building cost is that this reduces the cost base of the property for Capital Gains Tax purposes.

For more information regarding rental properties, please contract us here at Nixer. 

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