Rental Investors

Do you need your rental property annual accounts organised? We specialise in rental property accounting.

Here are a few things you need to know about expenses…

Expenses that you can claim are:

  • Accounting fees for the preparation of accounts.
  • Agents’ fees and commission relating to the rental of the property.
  • An allowance for a home office if you manage the properties yourself.
  • Depreciation on the building prior to the 2011-2012 income year.
  • Interest paid on money you borrowed to finance your property.
  • Legal fees for arranging the mortgage or finance to buy the property from the 2010 income year and beyond.
  • Mortgage repayment insurance.
  • Motor vehicle and travel expenses.
  • Rates and insurance.
  • Repairs and maintenance (except if they substantially improve the property).

Expenses that cannot be claimed are:

  • Additions or improvements to the property, these are deemed capital in nature.
  • Depreciation on the building from the 2011-2012 income year.
  • Interest on money that you borrow for some other purpose than financing the rental property, even if you used the rental property to secure the loan.
  • Real estate agent’s fees incurred as part of buying or selling the property.
  • Repairs and maintenance that go beyond replacement and are in fact improvements to the property.
  • The purchase price of a rental property.
  • The capital part (principal) of any mortgage repayment(s).