Hi,
Is it legal to subtract the utility bills (Water, Phone, Gas and Electricity) because in the rental fee on my IP the bills is included ?
So the calculation to declare in the tax pack option #24 is : Total monthly income from rent minus with (Water + phone + gas and electric bill + Strata + Council)
The reason is that I no longer live in the PPOR because I had to relocate to some other city while my current rental agreement with my current tenant is until end of the year.
Any suggestion and comments would be greatly appreciated.
Thanks
If the tenant pays the bills then you could include it, but the amount they pay you would be income i presume.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks for the reply, yes I paid the bills and the utility not them for sure because those account are still under my name.
In that case it is probably an expense incurring in producing the rental income
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It seems strange that you would be paying for a tenant's phone use, electricity and gas when you moved out of the property. If you are paying for these they would be deductible. If you are renting out the property then the rent and therefore any deductions should go at 21 Rent on the tax return, not at 24 Other Income. Don't forget that you may also be claim for depreciation. A quantity surveyor will be able to let you know if this is possible.
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