If you own a Commercial rental Property you can claim the following list of expenses as a tax deduction as long as the expenses were incurred during the period your property was rented or available for rent.
Click on the Image to see larger.
You can only claim a tax deduction for these expenses if you actually incur them and they are not paid by the tenant.
Property
- cleaning;
- gardening, landscaping and lawn mowing;
- repairs and maintenance;
- appliance servicing costs;
- body corporate fees and charges;
- insurances (building, contents, public liability);
- pest control;
Administration
- stationery and postage;
- telephone calls and rental;
- property agents fees and commissions;
- secretarial, bookkeeping and accountancy fees;
- advertising for tenants;
- travel and car expenses;
Government
- water rates;
- land tax;
- council rates;
Legal
- body corporate fees and charges;
- lease document expenses;
- legal expenses;
- quantity surveyor’s fees;
Utilities
- electricity and gas;
- in-house audio/video service charges;
- security system / patrol fees;
Bank
- bank charges;
- interest on loans;
- mortgage discharge expenses;
You cannot claim…
- acquisition and disposal costs of the property;
- expenses not actually incurred by you, for example, water or electricity charges paid by the tenants;
- expenses that are not related to the rental of a property
What records need to be kept?
Keep a copy of all receipts. Make sure they are in English and include the:
- details of the supplier;
- amount of the expense;
- description of the goods or services;
- date the expense was incurred;
- date of the document;
Other Commercial Leasing Resources
Ten ways to negotiate a BETTER commercial lease
When negotiating a Commercial Lease it gives you greater power to understand the key provisions that will affect your bottom line. It’s not just the rent, there are a number of different clauses in the lease that contribute to the overall costs. Be aware that there are provisions that provide a little wiggle room and these often provide an opening to reducing the costs when negotiating with the Landlord.
Permitted Use and Exclusivity clauses in Commercial Leases
When you’re negotiating a retail lease, striking the right balance between your needs and that of your tenant can be challenging. A well worded permitted use clause balances your desire to maintain effective control over the premises and how they’ll be used against the tenant’s need for the opportunity to grow and expand their business. Here are some of the facts to consider when negotiating yours.