Suitable for: Anyone in preparation for lodging a tax return
Tax Difficulty: None required
Airtax Experience: Anyone
Time to read: 1-2 minutes
Reporting rental property expenses in your income tax return
If you rent the full property:
When renting a property you will have paid expenses which might be deductible in your tax return. As you are only allowed to claim expenses in relation to the days your property was available for rent and your ownership percentage, we have calculated the deductibility of your expenses as follows:
- Annual expenses (such as council rates and mortgage interest) are calculated based on your ownership percentage and days the property was available for rent.
- All other expenses are deductible based on your ownership percentage only. This means for all other expenses (not annual expense) you should only include amount paid relating to the rental period.
You can override these percentages if you need to.
If you rented part of property:
Renting part of your property is essentially the same as renting the full property. The exception is the point below:
- Additionally those percentages are reduced based on the private and shared areas within your property.
You can override these if you need to.
Where you can get more help:
- Feel free to search for other topics in the Help Centre
- If interested, consider using our Business Assist service to discuss with a qualified Tax Specialist about your BAS (recommended for first time users)
This document merely provides a broad outline of the subject and is necessarily general in nature. If you require specific advice, which is tailored to your specific circumstances, please do not hesitate to contact us (fees would apply).