RENTAL PROPERTY INVESTORS, DO YOU KNOW WHAT IS DEDUCTIBLE AND WHAT IS NOT?

 

For many residential investment property investors, there are a range of outgoings that are deductible and some that are not. The Australian Taxation office has in recent years focused on income tax returns of property investors targeting taxpayers who have made incorrect claims.

Do you know what is deductible? If not, then the following should assist:

WHAT IS DEDUCTIBLE IMMEDIATELY

  • Advertising
  • Body corporate fees including special levies
  • Cleaning
  • Gardening
  • Pest control
  • Council & water rates
  • Land Tax
  • Property agents’ fees & sundry charges
  • Postage, stationery & telephone costs
  • All insurances relating to the property
  • Repairs & maintenance (but not improvements)
  • Travel expenses for inspections, maintenance or rental collections
  • Quantity surveyors report for depreciation allowances
  • Interest on borrowings to finance the purchase

WHAT IS DEDUCTIBLE OVER A NUMBER OF YEARS?

  • Borrowing expenses including loan application fees, lenders mortgage insurance & registration fees
  • Depreciation on plant & equipmentfrom quantity surveyors report
  • Depreciation on building constructionfrom quantity surveyors report

WHAT IS NOT DEDUCTIBLE?

  • Costs of purchase including stamp duty & legal conveyancing costs
  • Costs of sale including legal costs, advertising & agents’ fees
  • Renovations & repairs immediately after purchase
  • Pre-purchase expenses including travel to inspect a property & costs of pre-purchase reports
  • Any costs incurred while the property was not available for rent

The Garis Group are residential investment property specialists and can assist you with any enquiries that you may have regarding investment properties and income tax. Call us today on (02) 4969 4699 for a no obligation appointment or visit our website for further information www.garis.com.au.

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