Whether you have just made your first property investment or have a number of properties in your portfolio it's always handy
having an idea as to what you can claim on your property investment when it comes time to lodge a tax return.
Be aware that you can only claim for the period that the property is rented or available for rent, check out the
Australian tax office for more information.
Expenses could include:
- Advertising for tenants
- Bank charges
- Body corporate fees
- Borrowing expenses
- Council rates
- Decline in value of depreciating assets
- Gardening and lawn mowing
- Land tax
- Pest control
- Property agent fees or commissions
- Repairs and maintenance
- Water charges and travel undertaken to inspect the property or to collect the rent.
If part of your property is used to earn rent, you can claim expenses relating to that part only. You will need to work out a reasonable basis to apportion the claim.
Peter’s private residence includes a second storey which he rented out. The second storey represents 30% of the total floor area of the house. Peter also shared the laundry with his tenant. The laundry takes up 10% of the total floor area of the house. If half is a reasonable figure for use of the laundry by the tenant, Peter can claim 35% of the expenses for the property – that is, 30% + (1/2 x 10%) = 35%.
Always speak to a qualified accountant first as to the correct advice!
For a recommended accountant contact us, happy investing!
Read the full post