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