Commercial rental property schedule

All rent received for the year, before agent fees.

Rates, land tax, insurance, cleaning etc. that the tenant reimbursed. These are rental income; the expenses themselves go below.

E.g. insurance payouts for lost rent, bond money kept, letting fees or rental assistance received.

Administration and general-purpose sinking funds. Special levies for capital works aren’t deductible straight away.

Loan establishment, title search, mortgage registration, broker and valuation fees, lender’s mortgage insurance. Over $100 in total: claimed over 5 years (or the loan term if shorter).

Generally 2.5% a year (4% for some buildings) of the construction cost of the building and structural improvements. Needs a depreciation (quantity surveyor) report.

Appliances, carpets, blinds etc. Needs a depreciation schedule. Second-hand assets in residential property bought after 9 May 2017 generally can’t be claimed.

Building, contents and landlord insurance for the rental.

Interest on money borrowed to buy or improve the rental. Exclude any private part of the loan (e.g. a redraw for a car).

E.g. evicting a tenant or recovering unpaid rent. Not the legal costs of buying or selling the property (those are part of its cost base).

Management fees, letting fees, inspection fees.

Fixing damage or wear and tear from renting. Initial repairs when you bought the property and improvements are capital, not repairs.

E.g. bank fees on the rental account, accounting fees for the rental, smoke alarm checks.