Hi Guys,
Just wanted to understand all possible expenses before I take the dip of becoming a P.I.
For example, who pays for council rates? if landlord does then is it tax deductable?
All comments welcome
Thanks in advance,
KenHi Ken. It is just as if it was your own property – you pay for outgoings and costs – the differerence being rates, repairs, insurance and managemet fees all all tax deductable – as is loan interest. Major improvements or replacements are depreciated' or 'written' off over a period of years.
Rental received is assessable income.
Thats about that. You will find plenty of info on the ATO website easily re the specifics.
All the best.depending on which state of australia the house is in. In Vic Water rates are split into a service charge and an excess water use charge. in vic tenant pays excess water charge . Also borrowing costs spread over 5 years can be claimed but you have to check with the ATO website on what is a borrowing cost. New buildings can have depreciation on the building but you increase any future capital gains tax through reducing the cost base.
commercial buildings are different so the gst needs to be considered and also thr tenant pays out goings.
in residential you do not charge gst on rent but the landlord pays gst on every thing they buy except the 2nd hand houses they purchase instead then they pay stamp duty.Thanks for all the responses
Since posting the question I've visited Land Vic's website and found that it's the tenant's responsibility to decide what utilities they want connected and pay for any bills associated. This is applicable toVictoria and for anyone who's interested you can find more info here:
http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/RentingComplete.pdfAlso for anyone interested, you cannot accept a bond of greater than a month's rent if weekly rent is < $350
Cheers
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