Are you aware that you can make a claim for car/travel expenses to inspect your property, collect the rent and complete repairs on the property? As long as the sole purpose of the trip is to visit the property you can claim using the cents per kilometre method for the kilometres travelled or actual amounts of plane/bus/train tickets, accommodation and meals required to visit the property. However if you have a portion of the trip that is unrelated to the property then you have to apportion the claim so that the correct amount is applied to the property deduction.
Here are some examples
EXAMPLE 1: Travel and vehicle expenses
Although their local rental property was managed by
a property agent, Mr Hitch decided to inspect
the property three months after the tenants moved
in. During the income year Mr Hitch also made a
number of visits to the property in order to carry out
minor repairs. Mr Hitch travelled 162 kilometres
during the course of these visits. On the basis of a
cents-per-kilometre rate of 74 cents for his 2.6 litre car
Mr Hitch can claim the following deduction:
Distance travelled 5 rate per km = deductible amount
162 km @ 74 cents per km = $119.88
On his way to golf each Saturday, Mr Hitch drove
past the property to ‘keep an eye on things’. These
motor vehicle expenses are not deductible as they are
incidental to the private purpose of the journey.
EXAMPLE 2: Apportionment of travel expenses
The Hitchs also owned another rental property
in a resort town on the north coast of Queensland.
They spent $1,000 on airfares and $1,500 on
accommodation when they travelled from their home
in Perth to the resort town, mainly for the purpose of
holidaying, but also to inspect the property. They also
spent $50 on taxi fares for the return trip from the hotel
to the rental property. The Hitchs spent one day
on matters relating to the rental property and nine days
swimming and sightseeing.
No deduction can be claimed for any part of the
The Hitchs can claim a deduction for the $50
A deduction for 10% of the accommodation expenses
(10% of $1,500 = $150) would be considered reasonable
in the circumstances. The total travel expenses the
Hitchs can claim are therefore $200 ($50 taxi fare
plus $150 accommodation). Accordingly, Mr and Mrs
Hitch can each claim a deduction of $100.
So by keeping good records of any travel that is done to your rental property be it large or small they can add up and create an extra deduction that will help maximise your tax return.