Australian landlords claim $38.6 billion as tax deductions

Australia’s army of 1.76 million landlords has made a cumulative claim for $38.6 billion in tax deductions for the tax year ending 2011. Larry Schlesinger for the Property Observer writes that the amount translates into a ballpark figure of $23,000 per landlord.

Comparing facts:

• For the tax year ending 2010, the figure was $32.8 billion. This implies a leap of 18%.
• Instead of $23000 per landlord this year, the figure was $19000 last tax year.
• Among the deductions claimed this annual, the largest kitty belonged to “deductions for interest paid on home loans”.

Australian landlords can make a deductions claim if they procure a property for creating assessable income for themselves.

An important pre-consideration: Landlords can claim deductions for the expenses on maintenance and repair-work of a property but not on the costs incurred on renovation or home staging.

Landlords can also seek further rental deductions for expenses which include, but are not limited to, legal costs, consultant’s fee, advertisement costs, realtor’s fee, property manager’s fee. You can read the full article here.