The Australian Taxation Office has published a very comprehensive booklet with a wealth of information called Rental Properties 2020 that will assist property investors to determine:
- which rental income is assessable for tax purposes
- which expenses are allowable deductions
- which records you need to keep
- what you need to know when you sell your rental property.
Many, but not all, of the expenses associated with rental properties will be deductible. The booklet explains:
- how to apportion your expenses if only part of them are tax deductible
- what expenses are not deductible
- when you can claim those expenses that are deductible
- some you can claim in the tax return for the income year in which you spent the money
- others must be claimed over several years (including decline in value of depreciating assets and capital works expenses).
If you would like to download a copy of the Rental Properties 2020 booklet visit https://www.ato.gov.au/Forms/Rental-properties-2020/