Preparing your tax return - rental properties

Rental property owners should remember these key points when preparing their income tax return:

1. Include all income you receive from:

- short term rental arrangements (for example, a holiday home)

- sharing a part of your home

- other rental-related income such as insurance payouts and rental bond

2. Get your expenses right

- claim only for expenses incurred for the period your property was rented out or you were actively trying to rent the property on commercial terms

- some expenses must be claimed over a number of years

3. Apportion your claim in line with your ownership interest and where

- the property is only rented for part of the year

- only part of the property is rented

- the property is rented to yourself

- the property is rented below market rates

4. keep records – you should keep records of both income and expenses relating to your rental property, as well as purchase and sale records.