Got a question about rental income and tax returns:
My tenant pays $12,600 per annum to the agent who then deducts their 7% ($882) manangement fee who then pays me $11,718 into my bank account.
What is the amount of assessable income on my tax return; $12,600 or $11,718?
My thinking is $12,600. The 7% management fee along with other expenses are then claimed as a deduction.
Is this correct?
My tenant pays $12,600 per annum to the agent who then deducts their 7% ($882) manangement fee who then pays me $11,718 into my bank account.
What is the amount of assessable income on my tax return; $12,600 or $11,718?
My thinking is $12,600. The 7% management fee along with other expenses are then claimed as a deduction.
Is this correct?