Know what deductions you can claim this tax time.
More than 1.3 million people claimed nearly $25 billion in rental deductions in their tax return last year. Of these people nearly 150,000 people claimed deductions for the first time. The ATO will continue its focus in this area to ensure people claim the right deductions.
Here are a few things to think about when claiming deductions in your next tax return.
There are a number of rental property expenses that can be claimed as an immediate deduction. These include:
- interest on a loan to:
- purchase a rental property or purchase land to build a rental property
- purchase a depreciating asset for the property like an air conditioner
- finance renovations like a deck
- make maintenance repairs or repair damage to the property
- repairing part of the guttering or windows damaged in a storm or repairing part of a fence damaged by a falling tree branch
- maintaining plumbing, repairing electrical appliances or machinery as well as painting, oiling, brushing or cleaning something that is otherwise in good working condition
- preparing a lease agreement with your tenant
- evicting a tenant.
Should you require more information regarding your rental property, please feel free to contact the team at South East Access for both business and personal tax advice.
