You can claim water rates as a rental property deduction. Where a property is rented only for a portion of the year, the annual cost must be apportioned.
Often is a rental property is managed, the water charges may be paid for by the property management agency, and partially or fully reimbursed by the tenant. In this case the receipt from the tenant needs to be declared as rental income (under other income) and the payment of the water charges needs to be claimed as a rental property deduction.
After Wheatcroft Accounting was recommended to us four years ago we now use Sue Wheatcroft's firm for both our personal and business tax needs and we would highly recommend Sue and her team to anyone who requires a very professional and friendly service in Albany or the great southern area.
Jonathan & Caroline Smith
Whilst the National Rent Affordability Scheme was introduced some time ago, it has only recently become accessible to private investors.
We submit an application to the tax office with all of the details of your income and deductible expenses. Providing the application is approved, the tax office will then notify your employer of the variation, and ask them to withhold a more appropriate amount of tax from your salary every week or fortnight.
Whilst it can be a fairly simple process to acquire a medicare levy exemption certification, it does take some doing, and can take some time. If you are eligible, then it is absolutely worthwhile.
A simple explanation of the often overlooked 'home first used to produce income rule'.
You probably already know that your principle place of residence is exempt from capital gains tax. Unfortunately, once you subdivide, only one property can be exempt as your principle place of residence, so the other property (or properties) will not be exempt when sold.
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