Tax Checklist for Landlords

img-house2The new financial year has just begun.  To help ease the pain of preparing your tax return at the end of the year, it makes sense to plan ahead.

Usually a landlord is assessable for income tax on residential rental income received. However, there are some deductions for expenses and outgoings incurred in earning that income.

Some items that are not deductible include expenses of a capital or personal nature – for example, repairs at time of purchase, non-essential improvements to the property and legal expenses during the sale or purchase of the property.

The following checklist contains some common general expenses that can be claimed:

  • Advertising
  • Agent’s fees for property management
  • Audit fees
  • Bank charges
  • Borrowing and mortgage expenses
  • Cleaning
  • Depreciation of fixtures and furniture
  • Gardening and garden maintenance
  • Insurance premiums
  • Interest on borrowings to purchase the investment property
  • Land tax
  • Lease incentives
  • Lease preparation, registration and stamping (if applicable)
  • Legal expenses, including recovery of rent, evicting defaulting tenants etc,
  • Postage fees
  • Rates
  • Repairs and maintenance
  • Stationery
  • Tax advice fees and costs, including preparation of tax returns
  • Water rates

Remember to keep records of these expenses, to save you time and tax.  For more details, refer to the ATO website.

The ATO has an excellent video on this subject:

And lastly, we recommend that you seek advice from your accountant.

Contact us if you require a referral to an accountant or tax specialist.


Important notes:

The results shown in this article are for guidance only and may not reflect the actual amount payable by, or the tax details applicable, to a client. This report is an information service only without taking into account the investment objectives, financial situation or particular needs of any particular person or party.  No account has been taken of the rise and fall of interest rates, exit penalties, fees, or other investment strategies.

This article may not take into account changes to a client’s current circumstances in the future or the impact of specific future events.  The article is not, nor can it be interpreted in any way as, a detailed financial plan tailored to the client’s individual requirements, but is of general application only with the result that information/assumptions in it may change pending completion of a detailed financial plan.

The author does not accept any responsibility for the manner in which the article are used by the reader.  Reliance should not be placed by anyone on this article as the basis for making any financial, investment or other decision.

You should not make an investment decision based on this article.  You must obtain professional advice on any investment decisions or outputs from this article to determine whether they are appropriate for your particular needs, investment objectives and financial situation.