Managing Agent's Lease Fee and tax

[blubarb]

Hi All, Thanks for the interesting forum. This is my first post so forgive me if it's a bit wordy.

If a managing agent 'netts out' his lease fee of a month's rent to the landlord is the landlord still able to claim it as a tax deduction if it has no effect on the taxable income.

For example, if an agent contracts to rent out a commercial property for an owner at $1,000k pcm over 12 months, less one month rent free and a one month lease fee for finding a tenant, a nett pa total to the owner of $10k. The first months rent is then taken by the agent (and I assume the tenant makes out the cheque to the agent). Is there a deduction here for the lease fee if it passes to your account then to the agent or if it goes directly to the agent?

I hope I am making myself clear, any thoughts on it?

 

[MattR]

The payment by the tennant for the first months rent is assessable income to you. The agents subsequent (theft) of such for a lease fee etc is a deduction for you.

So a nuetral position

 

[blubarb]

thanks for that, MattR. Can I ask if it must appear in the statement/tax invoice?