Claiming Insurance as a Tax Deduction for Rental Properties
Insurance related to rental properties is considered a deductible expense. This includes building, contents, public liability, and loss of rent insurance. These costs can be claimed in the income year they are incurred.
Types of Insurance for Rental Properties
There are generally three types of insurance for rental properties:
Building Insurance: This covers damage to the property’s structure.
Contents Insurance: This provides protection against damage to what’s inside the property, such as carpet and appliances.
Loss of Rental Income Insurance: This covers the landlord for lost income due to various reasons, such as a tenant breaking the lease or being evicted.
Example of Claiming Insurance
If a rental property was damaged due to a natural disaster and the landlord received an insurance payout for lost rent, this must be included as income. However, the cost of repairs could be claimed as a deduction.
Recording Tax Transactions with Deduction Grabber
To keep track of these transactions, the “Deduction Grabber” app can be used. This app allows you to record your tax-deductible expenses on the go, anywhere at anytime..
Completing Your Tax Return with GoTax
When it’s time to complete your rental property tax return, gotax.com.au offers a very easy online tax return system. you'll be guided through your rental schedule, ensuring nothing is missed. Completing your rental schedule in your tax return is no longer daunting and it's very straightforward.
Claiming insurance and keeping accurate records of your expenses can significantly impact your rental property tax return. Apps like Deduction Grabber and online tax systems like gotax.com.au make this process easier and more efficient.
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