Buying your first rental investment property is very exciting but it also means additional record keeping is required to be ready when Tax Return processing comes. It pays to be aware beforehand of which information to keep track or keep a record of so you will get the full tax benefits you are entitled to.

Non Tax deductible Acquisition expenses

These expenses need to recorded and kept as it will be needed to reduce capital gain tax when property is disposed or sold.

• Purchase cost

• conveyancing costs

• Stamp Duty

  
  

Tax deductible Rental Expenses

For these rental expenses to be tax deductible, they should be incured for the purpose of producing a rental income and during the time that the property is genuinely available for rental (ATO, 2021) or is currently leased to a tenant.

• Quantity Surveyor cost

• Advertising cost

• bank charges

• body corporate fees and charges

• cleaning

• council rates

• electricity and gas

• gardening and lawn mowing

• repairs done to make it ready for renting (painting, plumbing etc..)

• in-house audio and video service charges

• insurance (Building, Contents, Public Liability

• interest on loans

• land tax

• lease document expenses (preparation, registration)

• Rental Agent Fees

For easy record keeping, we have prepared a spread sheet where you can record all these expenses and have it ready when you visit your tax agent. Download Rental Expenses Spreadsheet now.

Any further queries, we are here to help just shoot us an email, a text message or give us a ring. Contact us now.

For further readings, see Rental Property 2021.

References:

ATO 2021, Rental Properties 2021, ATO, viewed 9 Feb 2022 <https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Rental-properties-2021.pdf>