Expenses You Can Claim
INSURANCE & RATES ACCOUNTANT FEES
You can claim back the full cost of insuring your rental property and the council rates associated with the ownership of the property.
INTEREST
You can claim the fees charged by an accountant for:
• Your accounts to be managed
• Tax returns to be prepared
• Advice
However, you can’ t claim for any costs involved in the initial set-up of your rental property.
The interest paid on any funds borrowed to buy or enhance a rental property can again be deducted from the property’ s rental income, reducing the owner’ s taxable income and lowering their overall tax liability.
PROPERTY MANAGEMENT FEES & COMMISSION
The fees or commissions paid to property managers managing a tenancy on your behalf are 100 % claimable. If you manage the tenancy yourself and engage a property manager for specific services, you can also claim 100 % of the expenses you incur for these services.
LEGAL FEES
Where your total legal fees for any given year are $ 10,000 or less, you can claim a deduction for the legal expenses involved with buying a rental property.
If you’ re in the business of providing residential rental accommodation, you can also claim legal fees incurred when selling a rental property from your portfolio.
Note: We advise speaking to your chartered accountant to ensure you meet the criteria to be classed as being‘ in the business’.
This means all Ray White services including our wraparound full tenancy management through to our Ray White Choice product range of casual letting, inspections, rent management and more are entirely claimable.
LOW VALUE ASSETS
If you purchase a low value asset for your rental property($ 1,000 or less) you can fully deduct the cost of that asset at the time of purchase, removing the need to depreciate the asset over its useful life.
INVESTMENT INFORMATION GUIDE 7