IT6 - Net rental property loss 2012

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?



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

End of attention



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 eligible to receive a range of government benefits and certain tax offsets. It will also be used to determine your obligation to pay child support, if applicable.

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

Complete item D6 on your tax return and items 13, 15, 20 and 21 on your Tax return for individuals (supplementary section) 2012 as applicable.

Step 2

Complete the worksheet below to work out your net rental property loss.

Show all loss amounts in the worksheet, including any totals, as negative amounts.


Working out your net rental property loss

Net foreign rent (from R item 20)



Net rent (from item 21)



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



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 2012



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



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



Take away (f) from (e).



Step 3

If the amount at (g) in the above worksheet is negative, (that is, a loss), write that amount at Y item IT6. Otherwise go to question IT7 - Child support you paid.

Where to go next

    Last modified: 02 Jul 2012QC 25723