Investors – Don’t forget to claim………

As it’s that time of year again….. TAX TIME. Harcourts City Residential want to remind you to make sure you’re getting the most out of your deductions. Don’t forget to claim the following.

  • Advertising for tenants
  • Property management fees (i.e. the fees you pay to a Real Estate Agent who manages your property on your behalf)
  • Bank fees paid on the account you deposit the rent into and pay expenses out of
  • Bank fees on bank loans used to finance the purchase of the property
  • Owners corporate or strata fees paid (usually only if the property is a unit, apartment or townhouse)
  • Loan establishment fees paid to your bank to set-up the original loan to purchase the property, the fees applicable if you refinance your loan with a different lender (note these costs are spread over a five year period or until the loan expires, whichever is sooner)
  • Cleaning the rental property (eg: carpets, blinds, etc) after a tenant vacates the property
  • Council rates for the property
  • Maintaining the gardens and pool (eg: lawn mowing, landscaping, pruning, pool cleaning and water monitoring)
  • Insuring the property (including building, contents, and landlords insurance policies)
  • The interest paid on your mortgage (you can only claim interest on a loan that is specifically taken out to purchase or renovate the rental property)
  • Land tax (if you are required to pay it)
  • Legal fees in relation to your tenants (eg: if you have to engage a lawyer to collect outstanding rent or to evict a tenant. Although please note you cannot claim the legal fees you pay when you originally purchase the property until it is sold)
  • Pest control fees (eg: to prevent or treat termite or other pest infestations)
  • Repairs made to the property, fixtures or paint (eg: building, bathroom fittings, stoves, lighting, carpets, blinds etc)
  • Maintaining the property (eg: gutters, repainting internal or external walls)
  • Replacing capital items (eg: stoves, dishwashers, bathroom fittings, pool pumps, carpets, kitchens, hot water heaters, air conditioners or heaters)
  • Stationery, postage, telephone calls, and internet access related to the property, collecting rent, or undertaking maintenance and improvements
  • Travelling to inspect, undertake maintenance and repairs or improvements to the property (this may include travel by car, which you would have to provide the number of kilometres you travelled to and from the property, bus, train or air travel. It can also include the cost of accommodation and meals if you needed to stay overnight to complete the work)
  • Water rates paid for the property
  • Depreciation expenses relating to the cost of furniture, fixtures and fittings included in the property
  • Capital Building allowance of 2.5% (of building cost. This is added back for capital gains tax purposes when you sell the property)
  • Any other expenses you have paid that relate to the property

If you need an updated appraisal as to the likely selling price or current market rent register here and one of the Harcourts expert investment consultants will contact you to arrange.

For a Sale or Rental Appraisal Click Here –

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