Tips for rental property owners to avoid common tax mistakes

Tax Tips for Landlords: Must-Know Advice to Avoid Common Mistakes!

The ATO recently announced it would be auditing Rental Properties heavily this year given 9 out of 10 returns reviewed showed errors. This was highlighted in our recent blog ‘Navigating the ATO’s Spotlight this Tax Season‘.

The ATO has provided 10 essential tips to help rental property owners avoid common tax mistakes. These guidelines aim to assist property owners in maximizing their tax outcomes while remaining compliant with tax regulations.

  1. Getting initial repairs and capital improvements right
  2. Claiming interest on your loan
  3. Claiming borrowing expenses
  4. Claiming purchase costs
  5. Getting construction costs right
  6. Claiming body corporate fees and charges
  7. Apportioning expenses and income for co-owned properties
  8. Apportioning deductions for private use of your property
  9. Keeping the right records
  10. Getting your capital gains right when selling

Click here for the ATO’s breakdown of each of the above points.

Holmans have a handy Rental Property Checklist available via our website (click here). The checklist covers various aspects related to investment properties, including property ownership structure, rental income, expenses, maintenance, capital improvements, depreciation claims, and accurate record-keeping. It provides guidance on common misconceptions and understanding the rules surrounding capital gains tax (CGT). The checklist serves as a comprehensive resource for Australian property investors.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

Need assistance and want to know more?
Contact Holmans today;

Holmans Noosa: (07) 5430 7600 or email
Holmans Maroochydore: (07) 5451 6888 or email