10 May 2012

Wage and Rental Property Deduction Categories


You will also find tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) here - summary of e-tax and Assessable income and checklist of E-tax and Allowable Deductions.

A client recently asked for a list of expense categories, to help prepare for her 2012 tax rerturn. She also wanted some guidance on her rental property expense categories.

You would think that kind of summary would be readily available. Whilst we have separate summaries of work related expenses and rental property deductions, we actually don’t have a combined summary. So here goes:

Work related deductions: 
  • Work related car expenses – eg, transporting stock between stores, deliveries, visiting clients/customers; 
  • Work related uniforms/clothing – cost of replacing uniforms or protective clothing, including laundry, safety steel cap boots; 
  • Other work related expenses – union fees or professional memberships, tools, safety equipment, depreciation on tools over $1000, phone, tolls, insurance (eg audit insurance), stationery. Sundry expenses: Donations Cost of preparing last year’s tax return, including travel.
PS – don’t forget, to be an “allowable” deduction, the expense must be related to your income earning activity – for example, a butcher can deduct the cost of a knife, but not the cost of piano lessons. 
Rental Property: 
  • Borrowing costs (loan application fees, mortgage insurance). 
  • These items can be amortised over 5 years or the term of the loan, whichever is shorter. 
  • Body corporate fees 
  • Rates 
  • Water charges 
  • Insurance Interest expenses 
  • Pest control Management costs (real estate agent) 
  • Travel related to collecting income, inspections or reparis 
  • Telephone, stationery, postage 
  • Bank fees (many banks these days charge an annual fee) 
  • Capital Allowance (depreciation on plant, fixtures and fittings) – may be beneficial obtain a depreciation report from a Quantity Surveyor. 
  • Capital works (special building write-off) – may be beneficial obtain a depreciation report from a Quantity Surveyor. PS – You may find it helpful to read my ebook on taxation and rental properties explained here
For help with your eTax return see our eTax Return Checklist.

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comments

4 Responses to "Wage and Rental Property Deduction Categories"
  1. kimstener said...
    03 November, 2012

    It is a nice article.It is better to hire a property valuer or surveyor which can provide you with the true value of your property according to market.Thanks for sharing this article.depreciation report

  2. Tax depreciation said...
    09 November, 2012

    When changes occur and agree on variation with contractors the Quantity Surveyor can also be called on to assess cost effects. So, quantity surveyor is a very good option and must be used for managing your construction budget efficiently.

  3. Depreciation report said...
    19 April, 2013

    Since we have a flat fee in place for the job that we will do, and this depends on where the property is located with those further from the CBD costing more, we will assure you that you will get twice or thrice more money from the ATO than you paid us for the task. We can assure you that after evaluation, you will be liable to save some good money from the tax cuts.

  4. Depreciation schedule said...
    24 April, 2013

    Buildings, machines, tools, vehicles and furniture have a limited life span. All capital assets, except for the actual land have a lifetime limited the usefulness of a company. Depreciation is the method of accounting that allocates the cost of capital for each year of their use to help the company to generate income.

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