Loan Interest Whilst a property is rented or available for rent OR (we love this one) in the process of being built for rent and even if it’s still at planning stage interest incurred on funds used to purchase (including deposits) or improve the property are all tax deductible.
Depreciation The decline in value of the construction costs and its chattels, If you’re not already claiming depreciation for your rental property (you probably should be!) We recommend having a report prepared by BMT Quantity Surveyors (www.bmtqs.com.au or 1300 728 726) or google around as there are many offering this service.
Travel costs As with work related travel, you’re able to claim travel that you undertake in your car that relates to the rental property (using the ATO rates below).
Engine Capacity ATO rate
Lower than 1.6 Litre 65cents per kilometre
1.6 Litre – 2.6 Litre 76cents per kilometre
Higher than 2.6 Litre 77cents per kilometre
- Travel to meet with your agents
- Travel to meet with tradespeople/carrying out repairs on the property
- Travel to inspect your property etc
Interstate TravelWe love this one… Flights and Accommodation to inspect your interstate rental property (as above) meet with your agent etc are all (at least partly) claimable, don’t forget car hire!
Home Office Time spent at home on your rental property is deductible, the ATO provides an hourly rate that can be claimed for all home office activity to cover light and power costs. On top of this you can also claim items used such as a % of internet bills, printing and stationary costs and telephone calls relating to the property.
Land Tax Land tax is payable on a property that’s not your principal place of residence. If you own an investment property with land value of more than $250,000 ( less if it’s in a trust) and you’re not currently paying land tax you should discuss this one with us, at least its tax deductible….
Other Body Corporate fees, Professional Management/Agent fees, Insurance, Repairs, Council and Water Rates, Cleaning and Gardening – you name it we’ll look at it…
Good/Bad Debt Bad debt is debt against things like your home, credit cards, personal loans where good debt is debt against investments, It’s called good debt as we can tax deduct the interest where we cannot deduct for bad debt… there are many strategies to convert bad debt to good debt and we would love to help make the most out of your rental property, call us today…