Rental property deductible expenses
What you can claim?
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
borrowing expenses
capital works
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 or commissions
repairs and maintenance
stationery
travel undertaken to inspect 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.
Example
Timmy’s private residence includes a second storey which he rented out. The second storey represents 35% of the total floor area of the house. Timmy also shared the laundry with his tenant. The laundry takes up 5% of the total floor area of the house. If half is a reasonable figure for use of the laundry by the tenant, Timmy can claim 37.5% of the expenses for the property – that is:
35% + (1/2 x 5%) = 37.5%.
Need help with your investment property expenses? Contact us today.