Deductible Expenses

• Fees for bookkeeping services, accountants, and accounting software
• Renting out the property is advertised
• Agent commissions and fees for property management
• Bank fees for accounts used for paying bills and collecting rent
• Fees for body corporate (excl special purpose levy contributions for improvements, initial repairs)

• Borrowing costs, such as broker commissions, valuation fees, survey and registration fees, and mortgage insurance, etc (Note: borrowing expenses are deductible but not all at once – check with your accountant)
• Capital Allowances, often known as Division 43 claims for construction

and capital improvementsUse a depreciation schedule created by a quantity surveyor to document qualifying works. Annual write-off for the depreciation of the building and/or structural upgrades or additions

• Internal and outdoor cleaning, grass care, and pest control (windows, pool, etc.)
• Use a depreciation schedule created by a quantity surveyor to calculate the depreciation of fixed assets (section 40 items, such as carpet, blinds, hot water systems, and air conditioning, among others) (changes may apply for properties purchased after 7.30pm 9th May 2017)
• Gas and electricity costs that the tenant is not responsible for
• Tenant not paying internal video service fee (such as Foxtel)
• Insurance rates for health/accident, landlord, building, fire, and burglary insurance

• Charges for interest on the loan
• Land tax or other taxes relating to property
• drafting, filing, and stamping of leases
• Legal fees for obtaining back rent, pursuing compensation for agency contract violations, and evaluating tenant credit worthiness
• Mortgage discharge costs and early loan payback penalties
• Insurance for mortgages is seen as a borrowing charge.
• postage, office supplies, phone calls, and rentals (when related to dealing with real estate agents, tenants, services and other matters related to the rental property)
• Pre-payments: If less than $1,000 and for a shorter term than 12 months, the entire price is deducted up front (confirm with accountant)
• Quantity Surveyor Report for Depreciation and Capital Allowances (as referred to above)
• Council and water fees that the tenant is not responsible for paying
• during the tenancy, repairs and upkeep (initial repairs will be considered capital improvements and written down over time)
• Costs of security monitoring
• Travel costs for preparing the property for new renters, collecting rent, inspecting the property during or after tenancy, performing repairs and upkeep, inspecting the property before purchasing, and visiting an agent to discuss the property (commercial only)

Paperwork for Financially Sorted’s accountant to use

• bank records for accounts associated to real estate, including revenue and expense accounts,
• loan statements for investments tied to real estate,
• a statement detailing your property manager’s or agent’s income and expenses,
• Notices of rates (both council and water)
• receipts and invoices for your property-related expenses,
• insurance contracts describing your premium costs,
• Depreciation schedule for taxes (quantity surveyors report),
• travel diary,
• any other file you typically deliver.