Yes/No? I own a unit & water charges cannot be passed onto the tenant.
Quick Question - Are water charges tax-deductible on a unit?
- Thread starter CairnsInvestor
- Start date
Well the unit is unrentable without a water supply - so its an easy call. Yes, the water charges are a cost of doing the business and as such are tax-deducible to you.
Aimjoy
Agree with Aimjoy...
The ATO Guide to Rental Properties lists "expenses for which you can claim an immediate deduction" on p9. Last on the list is "water charges".
The ATO Guide to Rental Properties lists "expenses for which you can claim an immediate deduction" on p9. Last on the list is "water charges".
Assuming your IP is in Queensland, that state's legislation has recently been changed to allow water useage charges to be passed on to the tenant, as long as the property is separately metered and water-saving devices are fitted (e.g. dual flush toilets, low-flow taps etc) - if these conditions are not met, the LL remains responsible for water useage charges. Water supply charges remain the responsibility of the LL under all circumstances. As Aimjoy and yo yo ma have stated, any water costs paid by the LL are tax deductible.
Cheers
LynnH
Cheers
LynnH
