Rental property deductions

• When did you sign the contract to purchase the property?
• Provide details of the owners of the property including:
  • the owners’ names
  • whether the property is owned as joint tenants or tenants in common, and
  • the percentage ownership interests according to the title.
• What was the purchase price of the property?
• When did you first make the property available for rent?
• Provide details of whether the property was available for rent for the entire income year in which you are requesting the private ruling.
• Provide details of who organises the renting of the property (for example, you or an estate agent).
• Provide details of your relationship to the tenants (for example, family, friend, business associate or landlord/tenant).
• Is the property leased for a market rate of rent?
• How was the rental charge determined?
• Detail any periods when the property has been vacant and why.
• Detail when you have used the property over the last three years.
• Details of any other times when the property has been occupied but no rent has been charged.

Interest expenses

• How did you finance the purchase of the property?
• Provide details of the kind of loan you chose to finance the purchase – for example, overdraft, split loan, fixed interest or interest only loan.
• In whose name is/are the loan(s) in relation to each property?
• Have the names on the loan changed since you purchased the property?
• If the loan has been refinanced, give details – for example, when and the type of original loan.
• If there was any outstanding loan on the property when you decided to refinance, provide details of how much was outstanding.
• Provide full details of any use of the loan funds other than for the purchase of the rental property.

Repairs

• Who paid/will pay the expense?
• Detail the work undertaken and the circumstances leading to the repair.
• If the repair was made to a separate item at the property, provide details as to whether the whole item was repaired or only a part/section of the item. For example, was the whole fence repaired or only a section of the fence?
• Provide details of whether the item is an inseparable part of the property.
• Provide details of whether the item is separately identifiable as a principal item of capital equipment.
• Provide details of when the item was originally acquired or built.
• Provide details of the condition of the item when it was acquired or built.
• When was the defect identified?
• Provide details of any modifications done.
• Provide details of any other work undertaken at the same time.
• Provide details of any advantages the new work has over the original.
• What is the item used for?
• Provide details of what the item was originally made from and what it consisted of.
• What materials were used to repair the item?
• Who carried out the repair?
• Are you entitled to claim a deduction for the decline in value of the item?
• Provide details of any insurance or other type of payment you will receive.
• Will you keep written evidence to support your claim?

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