What Should You be Claiming on Your Rental Property?

Claiming on Your Rental Property

Rental Property Tax Deductions

Claiming On Your Rental Property

In any rental business, the expenses don’t stop upon acquiring whatever it is that you are renting out. In car rentals for example, the owner of the car rental business continues to pay for other costs to keep the business running, such as maintenance costs, mechanical and cleaning services, and the like. The same goes for the property rental business. Depreciation Calculator

Rental property owners are well aware that whether they are renting out a studio flat, a three bedroom apartment, or a house, incurring additional expenses is inevitable in times when the property is rented out or is made available for tenants. What are these expenses to begin with?

Of course, when you put up an advertisement to reach interested tenants, there is a cost. The ongoing insurance payment that you shoulder as the property owner is an obvious cost as well. Aside from that, you have to pay compulsory charges such as taxes, interests on loans, legal expenses, and fees for the property manager.  Then you have the cost of maintenance and repairs. Yet, there is still a multitude of miscellaneous expenses that can be incurred in renting out a property for business.

Why is this knowledge important? No one enters a business venture without the intention of gaining profit while putting out less, and if you agree with this, then here’s some good news for you: There are certain rental expenses that you can claim a tax deduction for! This means that you earn more savings in taxes. Now, isn’t that a good thing?

You are probably excited by this information and want to find out more on how to go about claiming deductions for these expenses as well as the type of expenses eligible for deduction claims. Our next posts will discuss that in further detail. Stay tuned for more updates!

If you want a quote for a depreciation schedule click here – or use or free online tax depreciation calculator to estimate your savings.

Keeping Records for Tax Purposes

Keeping records for tax purposes

Keeping records for tax purposes

We all know that when it comes to maximising your tax deductions, keeping records is very important. Without them, you leave yourself exposed and vulnerable in the event of an audit by the Australian Taxation Office (ATO). Depreciation Quote Schedule

The ATO relies on individuals to be responsible for assessing which items can be declared and claimed when it comes to calculating their own taxable income. However, it is crucial that one is able to provide evidence and proof of how these figures were compiled.

When it comes to claiming deductions and maximising the depreciation benefits associated with your investment property, it is necessary to supply a record of each individual expense. In accordance with ATO requirements, all records relating to rental property expenses must be easily legible and must contain the following information: name of supplier, amount of the expense, nature of the goods or services, date when the expense was incurred, and the date of the document.

Depreciation Calculator This is particularly relevant when renovations are being carried out. There may be instances where a document does not indicate the date of payment. In this case, you may use other supporting but independent evidence, like a bank statement which shows the date when the expense was incurred.

Ultimately, keeping accurate and complete records means that your tax submission will stand up to scrutiny from the ATO and ensures that you achieve the best possible financial outcome. In the case where records are not able to be provided – for legitimate reasons – an estimate by a Quantity Surveyor will be accepted by the ATO.

If you haven’t got the construction and need a quote for a depreciation schedule – click here or use our free online depreciation calculator to estimate your tax deductions today!