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Topic
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Are Strata-Fees and these other things Tax-Deducatable,(Sinking Funds/Water rates/Council rates,both when you live in a property or lease it out)?
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Replies
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I don’t know what is deductible against income earned from a property rented out.
Why would you suppose that any of those would be tax-deductible for premises you live in?
The only circumstance I can think of would be if you let out part of your unit to a boarder, you declared the income from the boarder and claimed an appropriate fraction of costs of the property against that income, perhaps a third if the boarder shared the living space and had one of three bedrooms.
If you live in the property then no. If you run a business from home than you can claim % of your home as work related and therefore claim the house expenses. However this will then count against you when you sell the home and will attract capital gains tax. Also as PeterC states if you are renting out a room then you can claim a portion of the expenses. Talk to the ATO or your accountant before you think about this option.
Generally people only claim home office expenses such as office furniture and electricity if they work from home.
if you own the property and rent it out then the strata levies are tax deductible. However if the strata raises a special levy that fixes something that is capital in nature such as the roof then this is not out rightly deductible. It must be depreciated. For example if your portion of the levy was $10,000, then this is depreciated at 2.5% each year until you sell the property, stop renting it out or you live in the property.
As for anything else that is deductible go to the ATO website.
talk to your accountant or the ATO before you start claiming anything.
Information from the Australian Taxation Office can be found HERE. – Whale –