We’ve helped many clients become first-time property investors over the past 12 months. If you’re one of them, with tax time fast approaching it’s important you’re prepared and understand what you can and can’t claim.

According to the ATO, around 90 per cent of investment property owners made mistakes in their tax returns last year, with the most common errors around loan interest, borrowing expenses, repairs and improvements.

It therefore goes without saying that maintaining accurate records is critical. The basic rule is if you can’t substantiate it, you can’t claim it.

When you lodge your 2021 tax return, you need to declare to the ATO how much rent and rent-related income you received over the financial year.

Additional to rent, rent-related income can include things like rental bond returns, insurance pay-outs and letting fees you received. Rental expenses you can claim may include loan interest, agents’ fees and commission, land tax, body corporate fees and charges, maintenance costs and insurance.

Looking to June 30, you should be getting organised for tax time now, making sure you have your receipts and documents in order. Creating a spreadsheet or even using an expense tracking mobile app is also a great way to be ready.

And if you don’t have one, make sure you seek the expert advice of a professional tax adviser about your investment property and tax return, so you can be sure it’s done correctly.

You can find out more about the tax implications relating to residential rental properties from the ATO website: https://www.ato.gov.au/…/Residential-rental-properties/


Disclaimer: The information provided in this blog is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs, and it is important for you to consider these matters and to seek appropriate legal, tax and financial advice.

Pinnacle Advisory Pty Ltd trading as My Expert® Wealth ABN 36 638 505 950 is a corporate Authorised Rep of MG Wealth Advisors Pty Ltd AFSL n. 496089 ABN 20 617 338 137.