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  • Buying a property

    • Set up an easy-to-use record-keeping system as your first priority. This can be as simple as a spreadsheet or you can use professional software.
    • Keep records of every transaction over the period you own the property. This includes contracts of purchase and sale and conveyancing and loan documentation.
    • Also, keep records of the costs of buying the property such as legal fees, stamp duty on the transfer and initial repairs. You can’t claim an immediate tax deduction for these but they will reduce the tax you pay when you sell the property.

    Owning a property

    • Include all your rental income in your tax return
    • You can claim immediate tax deductions for things such as
      • loan interest
      • rates and taxes, including council and water rates and land tax
      • property management fees
      • insurance
      • body corporate fees
      • cleaning and gardening
      • repairs and maintenance relating to when your tenants were living in the property.
       
    • You can claim tax deductions over several years for things such as
      • capital works, otherwise known as building costs
      • borrowing costs.
       
    • When lodging your tax return make sure you
      • include all your rental income
      • only claim deductions for periods that your property is rented out or genuinely available for rent
      • don’t claim deductions for periods that you use the property yourself
       
    • Scan copies of your receipts to make it easier to store and access them

    Remember, keeping proof of all your income, expenses and efforts to rent out your property means you can claim everything you are entitled to.

      Last modified: 03 Aug 2017QC 18218