When it comes to rental property, there are a range of deductions you can claim on your investment property, as we saw in our previous post ‘Rental Property-What can you claim as a deduction?’
But beware, the ATO has a close interest in incorrect rental property tax claims as part of its compliance. If you are the owner of a rental property you must know there are some expenses the ATO doesn’t let you claim as a deduction, such as:
Expenses by the time the property was not genuinely available for rent.
Acquisition and disposal costs of the property, conveyancing and advertising costs and stamp duty on the title transfer. In this case, unlike the stamp duty on the transfer of a property under the ACT’s leasehold system, the stamp duty on the transfer of freehold title is not deductible.
Expenses not actually incurred by you, such as water or electricity usage charges borne by your tenants.
Expenses not related to the rental property that are connected to your own use of a holiday home that you rent out for part of the year, costs of maintaining a non income producing property used as collateral for the investment loan.
According to the ATO, from 1 July 2017, travel expenses relating to a residential investment property are not deductible.
Expenses incurred in relocating assets between rental properties prior renting.
Expenses for rental seminars about helping you to find a rental property to invest in.
More Information
If you need any help with your rental property expenses, please feel free to contact our professional Precent Tax and Accounting team at (+61) 2 8317 1281, or send us a message to hello@precent.com.au.
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