Hi All,
Hopefully a quiky for all those longer term investors.
This will be my first finacial year for my first investment property purchased earlier this year. Just wondering, if the total rental income received is say $500, and of that the agent charges me $50 (so $450 in my pocket)- what do I claim as income on my tax return? $500 or $450, with an expense of $50…….
Cheers,
LGHi LG,
You will list your gross income from this property as being $500 and then you will list expenses as being $50.
The net effect of this is that you taxable income increases by $450.
With tax, simply, you should declare all income and all allowable expenses. The difference income – expenses is added to/deducted from other income sources.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Great – thanks Derek. I figured this would be the case, but just wanted to clarify.
Cheers,
LG
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