Rental property expenses

• advertising for tenants
  
• bank charges
  
• body corporate fees
  
• borrowing expenses
  
• cleaning
  
• council rates
  
• electricity and gas
  
• gardening and lawn mowing
  
• in-house audio/video service charges
  
• insurance – building, contents, public liability
  
• interest on loans
  
• land tax
  
• legal expenses
  
• lease costs – preparation, registration, stamp duty
  
• pest control
  
• property agent’s fees and commission
  
• quantity surveyor’s fees
  
• repairs and maintenance
  
• secretarial and bookkeeping fees
  
• security patrol fees,
  
• servicing costs – for example, servicing a water heater,
  
• stationery and postage
  
• telephone calls and rental
  
• tax-related expenses
• maintenance of property, and
  water charges.
  
• travel and car expenses - rent collection, inspection of property,
  
  
  

The following rulings provide guidance on particular situations:

-Taxation Ruling IT 2167—Rental properties
-Taxation Ruling TR 95/25-Income tax: deductions for interest under -subsection 51(1) of the Income Tax Assessment Act 1936 following FC of T v. Roberts, FC of T v. Smith
-Taxation Ruling TR 98/22-Income tax: the taxation consequences for taxpayers entering into certain linked or split loan facilities
Taxation Ruling TR 93/7-Income tax: whether penalty interest payments are deductible
-Taxation Determination TD 1999/42-Income tax: do the principles set out in TR 98/22 apply to line of credit facilities?
-Taxation Ruling TR 2000/2-Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities
-Taxation Ruling TR 2000/17 (with Addendum TR 2000/17A)-Income tax: deductions for interest following the Steele and Brown decisions
-Taxation Ruling TR 97/23-Income tax: deductions for repairs.

I f you need assistance applying this information to your own situation, call the Personal Tax Infoline on 13 28 61.