To help you get started, below are the more common items that landlord’s claim:
- Capital works deductions – extensions, alterations and structural improvements can be claimed, but not the land itself as this is subject to capital gains tax.
- Some depreciating assets such as curtains, blinds, stoves and hot water systems can attract a tax deduction.
- Repairs and maintenance such as replacing guttering, repairing electrical equipment, painting, cleaning or plumbing are all deductible. Check the ATO website as there are certain time frames in which these claims can be made.
- Travel to and from your rental property for inspections is tax deductible as long as this is the purpose of the trip.
- Other smaller items that are deductible include: advertising costs, body corporate fees, council rates including sewerage and water, gardening and lawn-mowing costs, insurance (including landlord insurance), pest control, property agent fees, office supplies and phone charges.
You should remember that you can only claim expenses relating to your rental property for the period that your property was rented or available for rent. Remember to keep all documentation and receipts for claimable expenses.
For more comprehensive information, visit the ATO website at the following links and consult with your accountant.
http://www.ato.gov.au/Individuals/Income-and-deductions/. Look down the left hand margin to Investments, including rental properties and you will see two sub-areas for information called Rental property expenses and a publication called Rental Properties 2012-2013.