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Six tax time tips for rental owners


We’re approaching that time of year again. It’s mid-year, winter is in full swing, the financial year has just drawn to a close and attention is turning to those upcoming tax returns.

As a rental property owner, that means compiling all your receipts and income statements to ensure your investment is accurately included in the tax return process.

Here are six tax time tips for rental owners to help you get the best outcome by being prepared and in the know…

Gather the necessary paperwork

This will generally include financial receipts and statements relating to the income and expenditure incurred over the course of renting out your property.

Tax deductions can significantly lower the overall taxable income earned from your property.  It’s a good idea to keep all related paperwork together so you can use what you require when needed.

Check with your property agent

Good communication with your property manager is paramount. You should receive a statement that clearly outlines income and expenses for the year. Expenses may include property management fees, routine repairs, and any advertising costs.

This is a good time to converse about any expenses that you are unsure about and to stay proactive.

Financial and administrative expenses

Bank costs, including interest charged on your rental property home loan, are considered a valid expense and are tax deductible.

It is important to keep all mortgage and loan statements as there is a good chance they will be applicable.

Certain administrative costs are also deductible including phone, stationary, and postage in cases where they have been used to manage your property.

Maintenance expenses

Over the course of the year your property will have incurred a number of expenses to ensure it is well maintained and in good condition.

These might include minor repairs such as a small roof leak, plumbing repairs or your annual smoke alarm check.

Other reasonable costs might include cleaning gutters, garden maintenance, or perhaps servicing the air conditioner.

Council and infrastructure charges

Local council rates cover the cost of things like roads, footpaths and waste management in your area.

You may also have been required to pay for water rates depending on whether your property is classed as water efficient. All paperwork regarding council and water charges is important to keep and is part of the costs you can claim come tax time.

Capital depreciation and improvements

Some deductible expenses are more significant and are spread over a period of time. Things like fridges and ovens are deductible over a period covering the average lifespan of that product.

Renovations and capital improvements are also deductible in scaled form and can vary depending on ATO rules and stipulations

It is important to consult an expert regarding tax implications for your property. Tax rules are often updated and vary depending on your personal financial situation. Seeking the right professional advice will make the process easier and help to maximise your benefits.

How we can help

Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.
We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.

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