What can I claim?
Capital or private expenses can’t be deducted from your rental income. Capital expenses are costs you incur to buy or increase the value of a
capital asset.
The following expenses can be deducted from your rental income:
- Rates and insurance
- Interest paid on money borrowed to finance your property
- Agents fees and commission relating to the rental of the property
- Repairs and maintenance (except if they substantially improve the property)
- Motor vehicle and travel expenses
- Legal fees for arranging the mortgage or finance to buy the property
-
Legal fees for buying and selling a property can be deducted. This is provided your total legal expenses for the income year, including the
fees associated with buying and selling a property, are equal to or less than $10,000.
- Mortgage repayment insurance
- Accounting fees for the preparation of accounts (We will add this in)
What can't I claim?
Capital or private expenses can’t 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 following are non-deductible expenses:
- The purchase price of a rental property
- The capital part of any mortgage repayment(s)
-
Interest on money which you borrow for some 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 (Capital Improvements).
- Depreciation on the buildings from the 2011-2012 income year.
