| Most Common Rental Property Deductions |
| The deductions available to landlords deriving rental income include: |
Council rates, water rates, land tax;
Building, fire, burglary, public liability and loss of profits insurance premiums;
Interest on money borrowed to acquire the income producing property;
Borrowing expenses, including guarantee fees, search fees, valuation fees, survey and registration fees, etc. (pro-rated over prescribed periods);
Management fees paid to real estate agents for managing tenanted properties and commission paid for the collection of assessable rental income;
The cost of advertising for tenants;
Non-capital repairs, regular maintenance costs;
Furniture and furnishings owned by the landlord where the property is let furnished, e.g. carpets, blinds, hot water service, light fittings are depreciable (an outright deduction may be available depending on the cost). Costs of a quantity surveyor?s depreciation report would be deductible;
Legal costs (capital costs up to maximum of $50), expenses of discharging a mortgage, lease preparation costs, etc., provided they are not reimbursed by the tenant;
Travel costs to inspect the property;
Bank charges and debits tax on accounts specifically maintained to receive rental income or provide for maintenance, commission or other deductible outgoings;
Specific telephone call charges in dealing with estate agents, tenants, maintenance providers;
Building write-off deductions ? but subject to restrictions.
13th-November-2003 |
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