Some expenses are immediately deductible. These include:
Building, contents and public liability insurance
Advertising to secure tenants
Remember, you must incur these expenses - you can't claim them if your tenant pays them.
Other expenses are deductible over a longer period of time. For instance, borrowing expenses over $100 are deductible. But rather than making an immediate deduction, you spread the cost over the lesser of the period of the loan or five years.
You can also claim deductions for depreciating assets, using the diminishing cost method or the prime cost method.
According to the ATO, such assets include ovens, clothes dryers and ceiling fans. But there is an exception - if a single asset was $300 or less, you will claim a deduction immediately, rather than spreading it over a period of time.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.