Rental Property Deductions

You can claim expenses relating to your rental property but only for the period your property was rented or available for rent; for example, advertised for rent.

Expenses could include:
• advertising for tenants
• bank charges
• body corporate fees and charges
• borrowing expenses
• capital works
• cleaning
• council rates
• decline in value of depreciating assets
• gardening and lawn mowing
• insurance
• interest expenses
• land tax
• legal expenses
• pest control
• phone
• property agent fees and commissions
• repairs and maintenance
• stationery and postage
• travel undertaken to inspect or maintain the property or to collect the rent
• water charges.

If part of your property is used to earn rent, you can claim expenses relating to only that part of the property. You will need to work out a reasonable basis to apportion the claim. As a general guide, apportionment should be made on a floor-area basis, that is, by reference to the floor area of that part of the residence solely occupied by the tenant, together with a reasonable figure for tenant access to the general living areas, including garage and outdoor areas if applicable.


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