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FAQs
What expenses can I claim for rental property?
What expenses can I claim for rental property?
You can claim followings:
Legal fees up to $10,000
Rates and Insurance
Interest paid on funds borrowed to purchase your property
Property Management fees & commission
Repairs and maintenance (unless they improve property)
Motor vehicle and / or travel expenses to inspect the property
Mortgage repayment insurance
Accounting fees
Depreciation
You cannot claim followings:
Capital or private expenses cannot be deducted from your rental income. Capital expenses are costs you incur to buy or increase the value of a capital asset.
Private expenses are incurred for your own benefit and are not connected with producing taxable income.
The purchase price of a rental property.
The capital part of any mortgage repayment.
Interest on money which you borrow for some other purpose other than financing the rental property, even if you use the rental property to secure such a loan.
Any repairs and maintenance that go beyond replacement and are in fact improvements to the property.
Real estate agent’s fees incurred as part of buying or selling the property.
The cost of making any additions or improvements to the property.
Depreciation on the building from the 2011/2012 income year.
For the 2009/2010 income year and beyond, a deduction is available for legal expenses incurred in acquiring a capital asset that is used to derive taxable income. This is provided your total legal expenses for an income year are equal to or less than $10,000.
Are donations made by a company tax deductible?
Annual Leave and Holiday Pay