Page 56 - Buckingham and Company Demo V2

ITEMS THAT CAN BE TAX DEDUCTED FROM RENTAL INCOME
Under law, many expenses incurred in relation to producing assessable income from your commercial property are tax deductible.
The following guide outlines many costs that be claimed against your rental income for properties owned from June 1999.
Disclaimer: The information contained in the following advice is issued to Buckingham and Company Estate Agents clients Pty Ltd for their use only. We strongly advise clients also seek independent professional taxation advice in relation to their financial obligations.
ALLOWABLE DEDUCTIONS
Advertising
All advertising costs associated with obtaining tenants for your property
Agents’ fees and commission
All fees including monthly costs and those associated with inspections and leasing
Bank fees and charges
Account keeping fees charged on bank loan accounts as well as FIDs and BADs related to financial transactions associated with your rental property.
Borrowing expenses
Mortgage costs including valuation fees and loan establishment fees are deductible over five years if it is a minimum five-year loan. Deductions match the loan period for loans less than five-years.
Cleaning
Costs associated with cleaning your rental property between tenancies including equipment hire and cleaning products.
Depreciation
The cost of furniture, fixture, window fittings, floor coverings and major items such as stoves, hot water systems and can be depreciated. Depreciation rates depend on each item
with those costing less than $30 normally fully deductible.
Electricity
Any electricity costs when property is being prepared or being cleaned up for the next tenancy.
Inspection visits
Costs associated with travelling to your property for inspection or maintenance purposes. Owners living far away or interstate can claim accommodation expenses only if inspecting their property is the primary reason for the trip.
Insurance
Premiums paid to insure property fixtures, public liability and mortgage insurance policies.
Interest on loans
Interest paid on mortgages, to carry out major renovations or purchase chattels.
COMMERCIAL SALES / LEASING