Note: This is a checklist, not advice.
Expense claims are subject to limitations based on their character, timing, extent of attribution to rental activities and sufficient substantiation.
*Some expense claims may typically be required to be spread over more than one tax year.
• Advertising for tenants
• Property management fees
• Bank fees paid on an account used for rental transactions
• Body corporate or strata fees paid
• Borrowing costs*
• Mortgage discharge costs
• Loan establishment fees*
• Capital allowances, decline in value, depreciation (see limitation from 9 May 2017)*
• Council rates
• Gardening maintenance
• Lawn mowing
• Tree pruning
• Pool cleaning
• Maintenance of grounds, buildings, contents
• Insurances including building, contents and landlords insurance
• Interest on loan(s) or credit cards used to purchase the property or to pay for anything directly associated with the property
• Land tax
• Legal fees – lease preparation
• Legal fees – debt collection, eviction etc
• N.B. Legal fees associated with the property purchase are generally not deductible, but would usually form part of the property’s cost base for CGT purposes.
• Pest control – prevention or eradication
• Repairs to property, equipment or fixtures (distinguish replacements or complete renewals which may need to be capitalised)
• Removal of asbestos(1)
• Replacing capital items – costs may need to be allocated over the effective life of the asset *
• Stationery, postage, telephone calls and internet access directly related to managing the property, e.g. collecting rent or organising maintenance
• Travelling to inspect, undertake maintenance and repairs or improvements to the property. In some circumstances this can include accommodation.
Note: This deduction not available from 1 July 2017.
• Water rates and water consumption
• Other asbestos removal costs, such as the removal of asbestos roofing, may be claimable on the same basis.
* RealRenta Subscription Fees
However note that these environmental protection provisions are ‘provisions of last resort’ – meaning that if a deduction is available under any other section of the Tax Act (e.g. for capital works, or repairs), an environmental protection deduction cannot be claimed.
Thursday, 11 April 2019