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  • About question IT6

    Question IT6 image from tax return for individuals form.

    This question is about the net loss, if any, from any rental property you owned.

    This question is not about capital gains or capital losses from your rental properties.

    Did you earn rental income or claim rental deductions, or receive a partnership distribution that included rental income or losses?

     

    No

     

    Yes

    Read below.

    The net rental property loss that you work out here does not affect the way we work out your taxable income. You can still claim allowable tax deductions for expenditure on your rental properties.

    However, your net rental property loss will be used in certain income tests to work out whether you are entitled to receive a range of government benefits and certain tax offsets.

    Answering this question

    You need details and records showing your Australian rent, foreign rent and your share of any rent that you received as a partner in a partnership. You will also need documentation showing the amount of any deductions that you are entitled to in respect of that rent.

    You need your statement of partnership distribution (the partnership tax return statement of distribution) showing your share of the net rental income or loss from your partnership.

    We consider that if the rental property is held by a trust then for the purposes of the income tests the trustee will generally be the owner of the property.

    Completing your tax return

    Step 1

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Complete item D6 on your tax return and items 13, 15, 20 and 21 on your Tax return for individuals (supplementary section) 2011 as applicable.

    Step 2

    Complete worksheet 1 to work out your net rental property loss.

    Where you have shown an amount as a loss on your tax return, show it as a negative amount in worksheet 1.

    Worksheet 1: Working out your net rental property loss

    Net foreign rent (from R item 20)

    $

    (a)

    Net rent (from item 21)

    $

    (b)

    Share of net rental property income or loss from the partnership tax return statement of distribution

    $

    (c)

    Net rental property income or loss from carrying on a rental property business taken into account in working out the amount at Z, item P8 of the Business and Professional Items Schedule for individuals 2011

    $

    (d)

    Add (a), (b), (c) and (d).

    $

    (e)

    Sum of the low-value pool deductions relating to your rental properties that you claimed at item D6 on your return

    $

    (f)

    Take away (f) from (e).

    $

    (g)

    Step 3

    If the amount at (g) in worksheet 1 is negative, (that is, a loss), write that amount at Y item IT6. Otherwise go to question IT7.

    Where to go next

     
      Last modified: 29 Jun 2011QC 25499