A few of our landlords have been asking us lately to clarify what they can or can’t claim, in relation to travelling to their properties.
This is straight from the ATO’s website:
• You can continue to claim a deduction for the cost of travel you incurred to inspect or maintain rental properties or to collect rent if the expenses were incurred:
o in 2016–17 and earlier years for residential rental properties
o for commercial rental properties
o by excluded entities
o when carrying on a rental property business.
Travel expenses include:
o preparing the property for new tenants (except for the first tenants)
o inspecting the property during or at the end of tenancy
o undertaking repairs, where those repairs are because of damage or wear and tear incurred while you rented out the property
o maintaining the property, such as cleaning and gardening, while it is rented or genuinely available for rent
o collecting the rent
o visiting your agent to discuss your rental property.
Travel expenses don't include:
o your personal use of the property or for purely private purposes
o carrying out general maintenance of the property while it is not genuinely available for rent
o undertaking repairs, where those repairs are not because of damage or wear and tear incurred while you rented out the property (for example, if you travel to undertake initial repairs before you rent the property for the first time, these are capital expenses and may be included as part of the cost base for capital gains tax calculation when the property is being sold later).
Where your travel expenses are partly for private purposes and partly related to the rental property, you can only claim the amount relating to the rental property.
Source: https://www.ato.gov.au/General/Property/In-detail/Rental-properties/Rental-properties---claiming-travel-expenses-deductions/?anchor=Allotherpropertytravelexpenses#Allotherpropertytravelexpenses
Jason Gwerder
Friday, 26 October 2018
