Successful property investors claim every deduction they are entitled to. From large deductions like property depreciation and interest repayments, to the smaller ones such as stationary costs and sundry expenses.
Rental property expenses can stack up quickly. Claiming these correctly can often make or break your success as a property investor.
What is a sundry rental expense?
A sundry rental expense can be various things, from interest on loans used to buy depreciating assets, bookkeeping fees and bank charges.
In the accounting landscape, sundry rental expenses are defined as ‘rare’ and in small amounts. This means a large, frequent expense such as mortgage interest repayments can’t be recorded as a sundry expense.
There are a wide range of sundry expenses available for you to claim. The exact types or categories can change based on your circumstances.
Do investors take advantage of sundry rental expenses?
While sundry rental expenses can be made up of several smaller costs, the numbers prove that investors still take advantage of them.
The latest statistics released by the Australian Taxation Office (ATO) from FY 2017-18 revealed that sundry rental expenses made up over $1.6 million of claims made by Australian investors.
What happens when a sundry expense becomes more frequent?
Everyone’s investment property journey is different, and sometimes an expense that was originally classed as sundry may eventually need to be reported as its own category.
|In practice: sundry to regular expense
Henry and Val own a block of fifteen residential apartments and rent each out. The apartment block is located in a popular coastal holiday destination.
Henry and Val hire security to monitor the outside of the building on known busy nights such as New Year’s Eve and national public holidays. As this is only a few nights of the year they can claim the security cost as a sundry expense.
After the first year of this arrangement, they decided to make the outside security monitoring more regular to include school holiday periods and all public holidays.
As the expense becomes higher and more frequent, Henry and Val aren’t able to claim it as a sundry expense. Instead, the security cost will become its own category in their tax return.
Tracking sundry rental expenses is easy with MyBMT
Knowing what you can claim is just one step to making the most out of your investment property. Tracking and lodging these expenses correctly is just as important.
The income and expenses tool on the free MyBMT portal helps you do this easily and will save you time. The tool tracks expenses with just a click of the button so there’s no need to keep piles of paperwork and receipts in your desk drawer.
MyBMT’s income and expenses tool is also designed to easily integrate with the ATO’s MyTax portal and any accounting software.
Claim the most with a tax depreciation schedule
A tax depreciation schedule fee is a one-off, 100% tax deductible sundry expense. BMT is the leading specialist and provides the most comprehensive tax depreciation schedules on the market.
BMT guarantees to find double their fee in the first full financial year claim or there will be no charge for their service, so you always know the schedule is worthwhile.
To learn more about BMT and the BMT Tax Depreciation Schedule, Request a Quote or call BMT on 1300 728 726.