Rental Income

Income received by way of rent from residential, commercial or industrial property is assessable income when it is received and includes:

• Advance rent
  
  
• Late rent
  
  
• Current rent
  
  
• Bond money only if you derived it because a tenant defaults to pay the rent or due to damage to the property which require repairs
  
  
• Insurance payments for loss of rent
  
  
• Reimbursement of deductible expenses.

However, rental income excludes:

• Rent due but not paid.

Rental income also excludes money received from a boarder in the following circumstances;

• From a family member as this is considered a domestic arrangement
  
  
• From an exchange student, as this is also considered a domestic arrangement
  
  
• From a boarder who only pays for expenses that are shared (food, electricity etc). In this case there is no benefit to the owner, which means no assessable income and therefore no deductions.

If the tax payer is running a boarding house then the income is assessable and deductions can be claimed.

NOTE - Do not confuse this with a room/rooms being rented out in a house, which would be assessable income as rent is being paid and there is a benefit to the owner.

You must include the full amount (Gross Rent) you earn in your tax return, not the net amount you receive from the property manager or agent.

If you have any questions regarding rental income call Australian Property Investor now on 03 9533 2255 or email us for a FREE, No Obligation appointment.

Planning

Where Do I Start

Property or Shares

Determining Risk

Ownership Options

Self Managed Super Fund

Buying a Property

Where to Buy

What to Buy

When to Buy

Buyers Agents

Investing in Property

Affordability

What Are My Benefits

Make Your Investment Pay

Capital Growth

Yields

Property Management

Rental Income

Landlord Insurance

Fees & Services

Tenants

DIY Property Management

Forms for Tenants

Getting Finance

Choosing a Lender

Choosing the Right Loan

Fixed v. Variable Loan

Low Doc Loans

Mortgage Insurance

Costs To Buy

Tax Implications

Negative Gearing

Capital Gains Tax

Income Tax

Tax Variations

Deductable Expenses

Tax Deduction Checklist

Tax Refund

Getting Ready For Tax

Depreciation Schedules

Quantity Surveyors

Cash Flow Analysis

Nero Apartments
The Best
Investment Opportunity
in Melbourne