Rental Property Checklist
The Taxation Office require details of rent received before allowing for any claims for expenses or deductions incurred.
The following Checklist should facilitate collation of your data for each property that was rented or available for rental during the year. Clients should contact our Firm for clarification or advice.
Note: The Checklist is primarily for residential properties so certain expenses will be inclusive of GST (eg Strata levies). Please advise if property is commercial in which case GST may need to be removed from certain expenses if you are registered for GST.
PROPERTY DETAILS |
Explanation | Client Notes |
| Address | Provide full address | |
| Date Acquired | Exchange of contracts is relevant for CGT, but please keep details of settlement - provide copy of Solicitors Settlement Sheet in year if acquisition. | |
| Finance | Provide details of interest incurred on finance wholly obtained to acquire the subject property. Seek advice where apportionment may be appropriate. | |
| Date First Let Weeks let during year or available for rent | Was the property rented to a related party ? If so confirm property was rented at market value on an arms-length basis. - Contact our Firm for advice. | |
INCOME |
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| Gross Rent for Year | Rent before expenses. You may forward a Real Estate Agent Summary as a starting point. Note rent is generally assessable on receipt. | |
| Other Rental receipts | Water usage reimbursements by tenant, Bond Recoveries and Insurance Recoveries | |
EXPENSES |
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| Advertising | Paper, web or other | |
| Bank Fees | Is there a bank account dedicated to collect rental and capture property outlays? If not consider reasonable apportionment. | |
| Borrowing Expenses | Provide full details of cost of finance (egloan application fees, finance property valuation fees, loan stamp duty, certain, other bank costs-any legal costs pertaining to obtaining finance for rented property) in the year of acquisition or refinance. Was an existing loan refinance? Was there a residual of unclaimed borrowing costs ? | |
| Commissions letting fees | Agent charges per summary | |
| Cleaning | ||
| Council Rates | Check no apportionment is required. (eg any period property has private usage as home ) | |
| Gardening | ||
| Insurance | Contents, loss of rent or building ? | |
| Interest | Interest is deductible; not principal repayment. Is any apportionment required (private usage) ? Caution re rent to related persons at non-commercial footing (token rent.) | |
| Land Tax | Check land tax thresholds. (varies in each State) Taxable at 31 December each year. | |
| Legal expenses | Consider borrowing expenses above, otherwise limited scope. Call for advice. | |
| Pest extermination | ||
| Repairs and Maintenance | Care re "initial repairs" -rectification of issues existing at purchase or after years of occupation as main residence. Consider expenditure that is eligible for depreciation and is not a repair. Seek advice | |
| Postage, printing and stationery | Expenses mainly where no agent involved. | |
| Quantity Surveyor Report | Reports paid for Property Tax Depreciation Reports. Seek advice we can refer you to obtain one. | |
| Strata Levies | Administrative and in many cases sinking fund levies. Caution as certain special levies may be considered to be capital if they are not a repair of the common property. Seek advice from our Firm. | |
| Travel | Reasonable cost of Travel to inspect repairs, management. Seek advice on this especially if property is interstate. | |
| Water Rates | ||
OTHER DEDUCTIONS |
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| Capital Works deductions | Certain properties may be eligible for capital works deductions but a Property Tax Depreciation Report will usually be required. Improvements may be eligible for claim. Call our office. | |
| Depreciation | Expenditure on appliances, or furniture or fittings may attract depreciation which in some instances may lead to a 100 % write off in the year of outlay. Call for advice. | |
