Rental Property Tax Deductions
Internet – the internet can be used to organise repairs, order and pay for new assets, send and receive emails, undertake research relating to property investment, and for using online software to record your property rent and expenses.
Computer/laptop/iPad/printer– if you manage your rental property records on your computer, or you use your computer to access the internet in relation to your property then you can claim it as a tax deduction. If you regularly use your printer to print documents in relation to your property then this will also be a tax deduction.
Computer Software – if you purchase special computer software to record your rent and expenses then this will be tax deductible. Many property owners choose to use Microsoft Office, Word, and Excel to keep a record of transactions relating to their property. If you decide to do this and want to claim it as a tax deduction, just make sure you apportion your claim taking into account the amount of time you use the software for private purposes.
Stationery/Postage – if you need to post documents or buy stationery that relates to your investment property, then you can claim this as a tax deduction.
And a final word
Remember that you must apportion your claims between private use and rental property use. For computer and associated internet expenses the tax office suggests keeping a diary for 4 weeks to record private use and rental property related use. This percentage can then be used as a basis to work out your claim for the entire year. Note that you will need to do a new diary every year.
As always I recommend heading over to the Australian Taxation Office website and reading up on rental property tax deductions yourself. This is the handout that every rental property owner should not be without! I also recommend that you find yourself a good accountant that specialises in rental property tax deductions. You should not attempt to lodge your own tax online if you own a rental property. There is way too much you can miss and way too much money to lose!
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