RBizz Solutions Corporate Accounting & Advisory
RBizz Solutions Corporate Accounting & Advisory
Corporate Tax Accountants & Business Advisors

How To Claim Legal Expenses On Rental Properties?

03/11/2020 03:16 PM

Claimable and Non-Claimable Legal Expenses On Rental Properties

Legal expenses

What you can claim

You can claim the cost of the following as income tax deductions:

  • evicting a non-paying tenant
  • expenses incurred in taking court action for loss of rental income
  • defending a damages claim regarding injuries suffered by a third party on your rental property.

What you can't claim

You can't claim the cost of the following as income tax deductions:

  • solicitor's fees for the purchase of the property (these are a capital expense)
  • solicitor's fees for the preparation of loan documents (these can be claimed as borrowing expenses)
  • legal costs associated with resisting land resumption (these are a capital expense)
  • legal costs associated with defending your title to the property (for example, defending an action by the mortgagee to take possession of the property where you have defaulted under the loan – these are a capital expense).
Source : Australian Taxation Office
This article is a general guide and does not represent a specific tax situation or provision. Also, this is not our professional advice on specific circumstances. Please call us at 13-000-RBIZZ or write to us at team@rbizz.com.au for our professional assistance.