In reference to an article posted by Kelly Partners entitled “Claiming Rental Property Expenses“, you can claim tax deductions for many of the expenses associated with the property. Some can be claimed immediately, and some are claimed over a number of years.
Here are common mistakes/errors committed by rental property owners when it comes to claiming rental property deductions:
- Claiming rental deductions for properties not genuinely available for rent
- Claiming deductions for properties only available for rent that is part of the year such as holiday home
- Claiming structural improvement costs as repairs when they are capital works deductions, such as re-modelling a bathroom or building a pergola
- Overstating deduction claims for the interest on loans taken out to purchase, renovate or maintain a rental property
So when you are thinking of buying a rental property make sure to understand your record-keeping and tax obligations. Keep your records straight!
To know more about rental properties, check out ATO’s video series.