Common Tax Deductions

Income Tax Deductions

A landlord is assessable for income received, by may claim deductions for losses and outgoings incurred in gaining that income.

The following is a checklist of common types of expenses that a landlord may generally claim as deductions.

• Advertising
• Agents commission for rent collection
• Audit fees
• Bank fees
• Borrowing and mortgage discharge expenses
• Cleaning
• Depreciation on furniture, etc
• Gardening
• Insurance premiums
• Interest on monies borrowed to purchase the property
• Land tax
• Lease incentives
• Lease preperations, registration, stamping
• Legal expenses in recovering arrears of rental, evicting defaulting tenant, investigating creditworthiness and preparing leases
• Management fees
• Postage
• Power supplied (gas/electricty)
• Rates
• Repairs
• Safe deposit box fees to hold title documents
• Secretarial, book keeping fees
• Servicing expenses
• Stationary
• Tax advice costs, tax return preparation expenses and expenses in objecting or appealing against assessment
• Telephone
• Travel
• Water rates

There are many expenses incurred by a landlord, which are allowable as deductions. Therefore, it is important that you are aware of these deductions in order to minimize tax payable. We recommend, however that you see the advice of your accountant or tax agent in relation to this matter.