Rental properties - claiming travel expenses deductions

What records do you need to keep?

You need to keep proper records to make a claim, regardless of whether you use a tax agent to prepare your tax return or you do it yourself. You must keep records of:

• the rental income you receive and the deductible expenses you pay - keep these records for five years from 31 October or, if you lodge later, for five years from the date your tax return is lodged
• your ownership of the property and all the costs of purchasing/acquiring it and selling/disposing of it - keep these records for five years from the date you sell/dispose of your rental property.

As capital gains tax may apply if you sell your rental property, we recommend you keep records of every transaction over the period of ownership of the property. This would include contracts of purchase and sale, and conveyance and loan documentation.

Keeping these records will help you work out your capital gain or loss correctly and ensure you do not pay more tax than you need to.

For information about easy ways to keep your records, refer to the section about asset registers in Guide to capital gains tax.