Immediately deductible rental expenses
– A taxpayer who owns rental property?
At a glance:
– Certain rental expenses may be claimed as an immediate deduction against rental income.
– Consider whether the expenses incurred in respect of the property are allowable deductions.
– Contact us if you require any clarification or advice.
Some rental expenses are immediately deductible in the year they are incurred or may require apportionment over different periods.
Below is a list of rental expenses that taxpayers may be entitled to an immediate deduction in the year they are incurred.
- Advertising for tenants;
- Bank charges;
- Body corporate fees and charges;
- Council rates and land tax;
- Electricity and gas;
- Gardening and lawn mowing;
- In-house audio/video service charges;
- Interest on loans;
- Lease document expenses;
- Pest control;
- Property agents fees and commissions;
- Repairs and maintenance;
- Tax-related expenses;
- Travel and car expenses; and
- Water charges.
Apportionment of rental expenses may be required if:
- The property is only rented out for part of the year;
- Only part of the property is used to earn rent; and/or
- The rent is not charged at commercial rates.
For more information, click here.
– Not all rental expenses can be claimed as an immediate deduction.