Profit and loss rental property schedule

Rental Property Income Tax

Property Investors who generate an income from the leasing of their investment property are subject to taxation on the profits under the Australian Taxation Office (ATO) legislation.

But of course, the ATO also allows for property investors to tax deductions for the running costs incurred in carrying out the lease.

Common items found in investment property profit and loss statement

  • Agent Management Fees
  • Accounting Fees
  • Rates
  • Home Insurance
  • Landlord Insurance
  • Body Corporate Fees
  • Loan Interest and servicing fees

Profit and Loss and Depreciation Schedules

When calculating your taxable income your accountant will prepare a profit and loss statement to use in combination with your quantity surveyor prepared tax depreciation schedule.

Your profit and loss statement will include all sources of expenditure relating to your investment property.
These expenses are the items that fall outside the scope of deductions a tax depreciation report covers.

Negative Gearing your investment property

Often the combination of your expenditures and tax depreciation on assets will be greater than the income generated by your property.
When this happens, your property qualifies for what the ATO considers Negative Gearing.

Benefits of negative hearing your property

It’s never ideal to be running at a loss and the ATO knows this. So to keep the economy turning, the ATO allows investors with negatively geared property to offset those losses by carrying over the excess deficit and marking it off as a tax deduction on other income streams. Another property perhaps…or your wage.

In the eyes of the ATO they all count.

Claiming Depreciation on an investment property

Before you sign up with a tax depreciation provider it’s advisable to get a written guarantee stating the minimum tax deductions you’ll receive after purchasing your tax depreciation report.

It’s an easy thing for any reputable quantity surveyor to provide and assures you of achieving your tax deduction expectations


Complimentary Quantity Surveying Services

When buying a rental investment property it’s important to know if the tax depreciation deductions are worth going to the effort of claiming, or not.
At WRC Quantity Surveying, we offer all past, present and future clients a complimentary ‘eyeball check’ of the property you wish to purchase. We’ll report back to you – at no charge – letting you know what kind of tax deductions you can anticipate receiving with our tax depreciation schedule in place.

To do this, simply get in touch with us and it will be done within 24hrs

Have any Questions?

Simply get in touch with me here and I’ll personally address any questions you have.

If you found this helpful, you may also find some of my other articles beneficial too. And to see some real life examples of what our clients have been receiving in tax depreciation deductions, check out our Client Portfolio page. But it’s usually best to start at the beginning by visiting our home page

This article was written by William Callaghan A.A.I.Q.S.
2nd generation Quantity Surveyor and founder of WRC Quantity Surveying

Published April 2023