Do you know what you are entitled to claim, and what you are NOT entitled to claim as a rental property expense? The ATO has recently released a publication which contains updated information as a guide to how to treat rental income and expenses, including more than 230 residential rental property items … yes, 230 items!!

You can claim a deduction for certain expenses you incur for the period your property is rented or is available for rent, but there are some items on the ‘no go’ list for claiming deductions.

This list of what you CANNOT claim includes:

  • acquisition and disposal costs of the property;
  • expenses not actually incurred by you, such as water or electricity usage charges borne by your tenants;
  • expenses that are not related to the rental of a property, such as: expenses connected to your own use of a holiday home that you rent out for part of the year, or
    costs of maintaining a non-income producing property used as collateral for the investment loan;
  • travel expenses to inspect a property before you buy it;
  • expenses incurred in relocating assets between rental properties prior to renting; and
  • travel expenses to (or other costs for) rental seminars about helping you find a rental property to invest in.

For more information, download the latest Rental Property Guide from the ATO.

If you have a rental property, and are not sure what your rights as, give TaxArana a call and we can help you out.


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