Come tax time, every cent counts. Owning a rental property allows you access to a range of a possible tax deductions that can boost your tax refund and save yourself from paying more. Many investors can miss out on maximising their rental property claims simply because they are unaware of what they can claim.
In order to be eligible to claim a deduction for rental property expenses, your property must have been rented or be available for rent in the period for which you are claiming the expense. Advertising costs for tenants is an example of a claimable rental expense.
The table below lists a sample of deductible expenses you may be eligible to claim in your tax return:
| Bank Charges | Body Corporate Fees |
| Cleaning | Council Rates |
| Electricity and Gas | Gardening and lawn mowing |
| Insurance | Interest Expenses |
| Land Tax | Legal Expenses |
| Lease costs | Pest Control |
| Property agent fees | Repairs and maintenance |
| Travel and car expenses – rent collection, inspection of property, maintenance of property | Water Charges |
There may be situations where you need to apportion between deductible and non-deductible expenses. Examples include:
- If the property is not available for rent for the full year, you may need to apportion some of the expenses on a time basis.
- If only part of the property us used to earn rent, you can claim only that part of the expenses that relates to the rental income. As a general guide, apportionment should be made on a floor area basis.
- If you apportion travel to inspect or maintain your rental property with travel for private purposes, you may need to apportion your travel expenses.
Don’t forget that statements of rental income and deductible expenses you have paid with any associated receipts and invoices should be kept for a minimum of five years.
The accountants at The Quinn Group have tax time covered. We can lodge your tax return with the ATO, provide you with tax advice and ensure you are claiming all eligible deductions to maximise your tax return. Call us on 02 9223 9166 or email info@quinns.com.au for more information or to book an appointment.
