Reletting Fee

[gad]

Reletting fee.
In the "yearly" statement from my PM they list Rental Income, they then subtract the Reletting fee to equal a lesser rental income amount. They then list the expenditure's after that total. Is this how the reletting fee is claimed in a tax return, by reducing the income?
Thanks

 

[Tim]

It should be

1) total gross rental income, then;

2) expenses claimed are total PM expenses as a cost in receiving the total gross rental income

Timbo

 

[Will1]

Do not do this folks. Take all your income (the rent) and include it as income

Then take all your expenses (eg re letting fees) and put them down as expenses, do not net one against the other.


The shortcuts cause you more grief than it is worth ( and are actually wrong in accounting and in tax law).


Sorry to sound prescriptive or patronising but trust me on this one.

Will1

 

[gad]

Thanks Tim, Will1

I thought as much. So where exactly in e_tax would you claim the reletting fee. Under "Prop. Agent fees/com", "Sundry rental expenses" or somewhere else altogether?
Thanks

 

[Jamie]

Hi gad,

Im assuming that, by asking about e-tax, you are doing your tax return yourself? (please correct me if Im wrong)

Have you thought about using an accountant? I have found that the cost of using an accountant (especially a property savvy one) is more than offset by both the amount of time it saves you, and by the number of things the accountant knows to look for that I dont.

This is especially important if you plan to own a number of investment properties.

Just a thought,

Jamie

 

[joejunemac]

E-tax

Hi Gad

I too am doing my own tax, mainly cos I've always had a great interest in it (I'm also a bookeeper). I agree that it's a lot of work but once the stuff is learned it is not forgotten, also I have had experience of BAD accountants in the past who actually lost me money (as well as financial advisers!), I don't really trust anyone else to do my tax now but must say that I think Dale on this site is wonderful! I am still considering going to see him in Melbourne next year not to do my tax but for the right advice.

p.s. I am claiming letting fee as part of PM expenses.
Good luck.

Regards


June

 

[Brenda Irwin]

My tax accountant puts the Letting fee down as an expense in the Sundries section. QS fees also go in there.

 

[gad]

I beleive the QS fees go under the business expenses section D15. As well as any educational books mags etc.
As the reletting fee is actually a fee from the PM I'm inclined to think it should go under the "Prop. Agent fees/com." section.

 

[INVESTRON]

I don't know if I'm on the right track here, but - why are you being charged a re letting fee, has the pm already charged a letting fee and is also charging a reletting fee.

 

[gad]

New tenant.