Can I Tax Deduct- Paying Tennants To Clean? Second Hand Furniture?

[tjb]

Hi, I have an 8 bedroom house IP which i rent to eight individuals and self manage. It is positive cash flow and I really want to maximise my tax deductions on it and have the following questions
1) I pay one of the tennants to clean the house weekly and mow lawns monthly- can i claim this as tax deduction? If so what documentation do i need to prove the payments to the tennant are legitimate?

2)I have filled the house with second hand items brought from garage sales- what documentation do i need to tax deduct their individual purchases?

3) given everything in the house is second hand can I still claim depreciation costs?

thanks guys

 

[Propertunity]

1) I pay one of the tennants to clean the house weekly and mow lawns monthly- can i claim this as tax deduction?

Yes this is pretty common in share-houses / student accom.

If so what documentation do i need to prove the payments to the tennant are legitimate?

Same documentation as any other expense: invoices / receipts. Or why noy have a written agreement with the cleaner? Perhaps you could even reduce the rent for that individual to compensate for their cleaning. That way your income is reduced and you don't have to worry about claiming the expense. Check with your accountant.

2)I have filled the house with second hand items brought from garage sales- what documentation do i need to tax deduct their individual purchases?

A receipt . But bear in mind they will be more of a depreciable asset than an immediate write-off (unless going into a low value pool). Again check with your accountant.

3) given everything in the house is second hand can I still claim depreciation costs?

It depends on how old the items are that you are purchasing. Again check with your accountant.

 

[Graingrower]

The simplest way would be to reduce the rent for the tenant cleaning. Less receipts, less bookwork. I like simple.