Taxation – What Can a Property Investor Legally Claim

November 23rd, 2022 by admin Leave a reply »

What and What not to Claim

The Australian Tax office (A T O) lists about 25 key areas in which rental expenses can be claimed.

What you can Claim:

- Advertising for Tenants
- Bank Charges
- Body Corporate Fees
- Borrowing Expenses
- Cleaning
- Council Rates
- Gardening and Lawn Mowing
- Insurance
- Interest on Loans
- Land Tax
- Legal Expenses
- Pest Control
- Property Management Fees Commissions
- Quantity Surveyor’s Fees
- Repairs and Maintenance
- Secretarial and Bookkeeping Fees
- Security Patrol Fees
- Servicing Costs (IE: servicing a hot water system etc)
- Telephone calls and rental
- Tax-related expenses
- Travel and car expenses (rent collection, inspection of the property, maintenance of the property etc)

(You can claim a deduction for these expenses only if you actually incur them.

What you cannot Claim:

The ATO lists some of the following expenses for which you are not able to claim deductions:

- The acquisition and disposal costs of the property (these costs include the purchase cost of the property, conveyancing costs, advertising expenses and stamp duty on the transfer of the property)
- Expenses not actually incurred by you, such as water or electricity charges borne by your tenants
- Expenses that are not related to the rental of a property, such as expenses connected to your own use of a holiday home that you rent out for part of the year.

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