Tax deductions for rental properties

Tax Deductions For Rental Properties

Do you own a rental property and want to know about the tax deductions you can claim? Any costs incurred in order to make an income from a rental property that you own are tax deductible. When it comes to expenses made with rental properties, the costs usually included are associated with owning and running it.

To maximise your tax refund, it’s critical to remain on top of your rental property tax deductions and claim them appropriately. For example: paying property insurance is an expense you incur to generate more money from the asset.

In order to help you with making the right claim for tax deductions associated with rental properties, here’s a list we have compiled that can be helpful for your next tax return. The most common ones include:

  • Advertising for tenants
  • Bank charges
  • Body corporate fees
  • Cleaning charges
  • Council rates
  • Electricity charges
  • Gas charges
  • Gardening and lawn mowing
  • In-house audio/video service charges
  • Insurance – building, contents, landlord
  • Interest on loans
  • Land tax
  • Legal expenses (tenant related)
  • Mortgage discharge expenses
  • Pest control
  • Property agent’s fees
  • Property agent’s commissions
  • Capital works
  • Quantity surveyor’s fees
  • Repairs and maintenance
  • Secretarial and bookkeeping fees
  • Security patrol fees
  • Servicing costs
  • Stationery and postage
  • Telephone calls and rental
  • Tax agent fees
  • Water charges
  • Property related purchases less than $300

Being a rental property owner, you can deduct something right away if you prepay one or more of your costs associated with renting out property for a period of 12 months or less and the period expires on or before June 30. If a prepayment is $1,000 or more but does not match these two requirements, it could need to be stretched over two or more years.

Are you an owner of a rental property? Have you claimed all tax deductions to which you are entitled? If yes, talk to our qualified tax accountants right away. KPG Taxation is your trusted accounting partner assisting individuals, property owners, business owners, and sole traders in meeting their tax obligations.

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