• Owning a property

    When you own a property, the following can affect your tax:

    • renting out part or all of your property
    • improving or repairing your property
    • subdividing your property
    • operating a home office or business.


    • You need to include all your rental income in your tax return.
    • You can claim a tax deduction on your rental property for your  
      • rates
      • interest
      • insurance
      • real estate agent management fees
      • decline in value of depreciating assets
      • capital works.
    • If you incur an expense you can't claim a deduction for while owning your property, you may be able to include it in the capital gains tax cost base (costs of ownership) when you sell the property.
    • If you use your private home as a rental property, in some cases you need a market valuation when you start to rent it.
    • Whether work done to a property is a repair or an improvement can affect the amount of your tax deduction.
    • If you subdivide your land, you don't have to pay capital gains tax if you retain ownership of it.
    • If you run a business from home, you may be liable for some capital gains tax when you sell.
      Last modified: 29 Jun 2015QC 18218