Are You ready to Grow Your Business? Get an Appointment

Rental Property Income

Description

Rental property income is the money you receive from renting out a residential or commercial property and comprises income received less deductible expenses. Property owners are required to report rental income to the Australian Tax Office.

Amaze Accounting can help you keep accurate records and ensure your tax return complies with Australian tax laws. We can also provide advice on improving tax efficiency, managing capital gains tax implications when you sell a property, and helping you make informed decisions about your investment.

How Does Amaze Accounting Help You?

  • Asset Protection Strategy—Consult our experts for an asset protection strategy using wills and trusts to future-proof your investment.
  • Improve Cash Flow—maximise your cash flow from your property investment with our proactive calculations and expenses claim advice.
  • Buying the Right Property—connect with our network partners, who can help you buy the right property for the best price.
  • Book An Appointment
  • Ensure Paying the Lowest Mortgage Rates—connect with our partners to ensure you’re paying the lowest mortgage rates available.
  • Develop a Long-Term Property Strategy—consult our certified financial planning partner to create a long-term property investment strategy.
  • Is Negative Gearing Right For You? —discuss with us whether negative gearing creates a better value proposition for you.

[OUR PROCESS]

Simple Process, Smart Solutions

Our creative and functional designs ensure your technology isn’t just modern, but future-ready.

[FAQ’S]

Top Questions Answered

Our creative and functional designs ensure your technology isn’t just modern, but future-ready.

The income is the income generated from renting out a property, such as a house, apartment, or commercial space. This income can include rent, security deposits, and other fees collected from tenants.

Income from rental properties is subject to income tax and must be reported in either an individual or business entity tax return.

o Property Management Fees—if your property is managed by a real estate agent, the fees they charge are deductible. o Interest on the mortgage used to purchase the property from the date the property is ready for rental. o Lenders mortgage insurance. o Depreciation on the property and assets in the property (dependent on current legislation and a surveyor's report). o Insurance—the cost of landlord and contents insurance for the property. o Maintenance and repairs so long as it is not an enhancement to the earning capacity of the property. o Rates and taxes on the property o Strata Fees for properties managed by a strata body/ o Legal, quantity surveying and accounting fees that are not associated with buying or selling the property. o Utilities—you can claim water, electricity or NBN, you pay for so long as you are not being reimbursed by the tenant o Painting, Cleaning and Pest Control while the property is tenanted, but not while the property is being prepared for rental.

o Short-term rentals, such as those rented out on platforms like Airbnb, are considered to be carrying on a business and are subject to specific tax rules. o Long-term rentals are considered passive investments and are subject to different tax rules.

Yes, you can claim depreciation on certain assets such as buildings, furniture, and appliances, which reduced taxable income from the rental property.

The Australian Tax Office (ATO) can impose penalties and fines. They can take legal action against individuals who fail to report the rental income.

A registered tax agent or accountant can assist you in understanding your obligations, claiming deductions, and ensuring that your rental income is reported correctly on your income tax return.