RESIDENTIAL RENTAL PROPERTY DEDUCTIONS

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There is some confusion over what can and cannot be claimed for residential rental property deductions. 

In a nutshell, the following expenses can be claimed:

  • Advertising for tenants

  • Body Corporate fees and charges

  • Council rates

  • Water rates

  • Land tax

  • Gardening & lawn mowing

  • Pest control

  • Insurance (Building, Contents, Public Liability)

  • Interest Expenses

  • Prepaid expenses

  • Property agent ‘s fees & commission

  • Repairs & maintenance

  • Some legal expenses

Generally speaking, you can claim a deduction for your costs in repairing and maintaining your rental property in the year you pay them, if those expenses relate to repairs and maintenance for wear and tear or damage. 

'Repairs' means work to make good or remedy defects, damage or deterioration of the property.  E.g.:

  • replacing part of the guttering or damaged windows

  • replacing part of a damaged fence

  • repairing electrical appliances or equipment.

'Maintenance' means work to prevent deterioration or fix existing deterioration.  E.g.

  • painting a rental property

  • oiling, brushing or cleaning something that is otherwise in good working condition

  • Maintenance plumbing.

If you need further clarification on what is claimable with your rental property, please contact our office.