Income tax, CGT and entities

Residential rental property

Residential rental property is a dwelling that an owner rents out to earn income. Rent is assessable income, and the owner may claim deductions for expenses such as interest, rates, insurance, agent fees and repairs, but only for the period the property is rented or genuinely available for rent. Costs of improvements and initial repairs are treated as capital, and capital works and depreciation may be claimed over time. Rent on a residential property is input taxed for GST, so no GST is charged on it and no credits are claimed. When the property is sold, CGT applies. Co-owners report income and expenses in proportion to their legal ownership.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.