Tax Tips for Property Investors

As tax time rolls around again, we have some tax tip information for investment property owners to help you get organised for 2024.

Do I need to declare rental income?

When you lodge your tax return, you need to let the Australian Taxation Office (ATO) know how much rent and rental-related income you received over the financial year.

Rental-related income can include:

  • Rental bond returns (e.g. if your tenant defaulted on rent or caused damage to your property)

  • Insurance payouts (e.g. when you receive a payment to compensate for damage to your property)

  • Letting and booking fees you received

  • Any amount a tenant pays you to cover the cost of repairs

Have a look at the ATO website for more information on what you rental income you must declare.

What rental expenses can I claim?

You can claim tax deductions for several expenses while your property is rented or available for rent.

These may include:

  • Management costs (e.g. property agent fees and commission)

  • Land tax

  • Body corporate fees and charges

  • Maintenance costs (e.g. cleaning, gardening, pest control, repairs and maintenance)

  • Property loan interest expenses

  • Insurance (e.g. building, contents and public liability)

  • Some legal expenses

  • Depreciation

What rental expenses can’t I claim?

You can’t claim tax deductions on:

  • Expenses someone else has paid (e.g. electricity bills paid by your tenant)

  • Property purchase costs (e.g. stamp duty)

Find out exactly what you can claim at the ATO website.

Let us help keep your accounts on track and stay on top of any investment property tax enquiries you may have. Contact us for pricing and a chat.