Expenses The following expenses can be deducted from your rental income:
rates and insurance
interest paid on money borrowed to finance your property
agents fees and commission
repairs and maintenance (except if they substantially improve the property)
motor vehicle and travel expenses
legal fees for arranging the mortgage or finance to buy the property
from the 2010 income year and beyond, legal fees for buying and selling a property can be deducted provided your total legal expenses for the income year, including the fees associated with buying and selling a property, are equal to or less than $10,000. Before the 2010 income year, legal fees for buying and selling a property are not deductible.
