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).