There are 27 valuable tax deductions for rental properties

Maintaining your rental property tax deductions is essential and claim them correctly to maximise your tax refund.

How do you determine if rental property expenses are tax-deductible?

If you rent out your property, you can claim deductions for some of the expenses you incur in these periods. You only claim deductions for the expenses that relate to the income-producing use of the property. You can't claim a deduction for expenses for your personal use of the property.

To help ensure you are making correct claims on your next tax return, we’ve listed 27 Rental Property expenses for you to check before the end of the year:

• Repairs and maintenance

• Secretarial and bookkeeping fees

• Security patrol fees

• Servicing costs e.g. smoke alarms

• Stationery and postage

• Telephone calls and rental

• Tax agent fees

• Water charges

• Property related purchases less than $300. Or *Depreciation of purchases above $300

• Land tax

• Legal expenses (tenant related)

• Mortgage discharge expenses

• Pest control

• Property agent’s fees and commissions

• Capital Works (claimed at 2.5% of the cost per year)

• Quantity surveyor’s fees

• Advertising for tenants

• Bank charges

• Body corporate fees

• Cleaning

• Council rates

• Electricity (While rented or available for rent)

• Gas (While rented or available for rent)

• Gardening and lawn mowing

• In-house audio/video service charges

• Insurance – building, contents, landlord

• Interest on loans

Here is another useful bit of information:

  • If you prepay one (or more) of your rental property expenses, such as insurance, that covers a period of 12 months or less, and the period ends on or before June 30, you can claim an immediate deduction. A prepayment that does not meet these two criteria and is $1,000 or more may have to be spread out over two or more years.

If you have any enquiries, please feel free to contact us at Instant Tax Refunds. We will gladly assist you.

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