What Can I Claim on My Tax Return For My Rental Property?

What can be claimed on my tax return? Tips on claiming tax when privately managing your investment property.

What Can I Claim on My Tax Return?

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While rental income from your investment property will be taxed, don’t forget that you can also claim tax deductions for the expenses you incur in relation to holding and maintaining the property.

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  • What deductions can I claim?
  • What deductions can't I claim?

 

What deductions can I claim? 

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For the period your property is rented or available for rent*, you may be entitled to claim the following deductions:

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  • Borrowing costs (e.g. interest payments on the mortgage and account fees)
  • Decline in value of depreciating assets
  • Body corporate fees and charges
  • Council rates and land tax
  • Water charges
  • Insurance (building, contents and public liability)
  • Advertising cost of finding new tenants
  • Repairs and maintenance
  • Cleaning
  • Pest control
  • Gardening and lawn mowing
  • Some legal expenses (e.g. cost of evicting a non-paying tenant)
  • Cost of travel taken to inspect or maintain the property

 

What deductions can't I claim?

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You will need to apportion your expenses to calculate the amount you can deduct if:

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  • Your property is only available to rent for part of the year*
  • Only part of your property is used to earn rent
  • You rent your property at non-commercial rates

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*Note: the property is likely to be considered available for rent if it is being advertised widely and in reasonable condition

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Examples of expenses that you can’t claim:

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  • Expenses paid by your tenants in relation to the property (e.g. may include water or electricity usage charges)
  • Acquisition and disposal costs (including conveyancing, stamp duty on the title transfer etc)

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Remember, it is important to retain all the relevant paperwork and receipts as evidence of your investment related expenses.

 

Check out the following ATO links for more information:

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