Claiming Rental Property Expenses

The ATO has announced an increasing focus on rental property deductions, especially on ensuring that investors get their claims right.  The ATO has noted that some common errors made by rental property owners include:

  • claiming rental deductions for properties not genuinely available for rent
  • incorrectly claiming deductions for properties only available for rent part of the year such as a holiday home
  • incorrectly claiming structural improvement costs as repairs when they are capital works deductions, such as re-modelling a bathroom or building a pergola
  • overstating deduction claims for the interest on loans taken out to purchase, renovate or maintain a rental property.

To assist property owners, the ATO have released a series of short videos which explain the tax implications of buying, owning and selling a rental property.

Please see below for links to relevant ATO videos around these areas.

Rental property video series

Residential rental properties