Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Re: Where to report the commercial rental in Trust/Company tax return?

Enthusiast

Views 495

Replies 3

Dear All,

 

Based on my reading, it seems like that to operate a commercial rental property is running a business. So assum there is a commercial rental property under a corcorate trustee or a company, which section should I report the comercial rental income & expenditures in Trust/Company's tax return?  it seems okay to report rental income & expenditure either under 'business income & expense' section, or under 'Rent' section.

 

 

 

Kindly Regards,

 

Emily

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 2

Hi @emilylv88

 

You're correct!

 

On a 2020 Company tax return, you claim rental income at Section 6 > Income > Label G (Gross rent and other leasing and hiring income) and rental expenses at Section 6 > Expenses > Label H (Rent expenses)

 

On a 2020 Trust tax return, you claim rental income and expenses at Section 9 - Rent.

 

Thanks for your question Smiley Very Happy

3 REPLIES 3

Most helpful response

Former Community Support

Replies 2

Hi @emilylv88

 

You're correct!

 

On a 2020 Company tax return, you claim rental income at Section 6 > Income > Label G (Gross rent and other leasing and hiring income) and rental expenses at Section 6 > Expenses > Label H (Rent expenses)

 

On a 2020 Trust tax return, you claim rental income and expenses at Section 9 - Rent.

 

Thanks for your question Smiley Very Happy

Enthusiast

Replies 1

Dear Zackary,

 

Thanks for your replySmiley Very Happy

 

As you mentioned below:

'On a 2020 Company tax return, you claim rental income at Section 6 > Income > Label G (Gross rent and other leasing and hiring income) and rental expenses at Section 6 > Expenses > Label H (Rent expenses)'

 

It seems like 'rent expenses' in Section 6 > Label H is the rent that leasee pay to leasor. As a leasor/property owner, will it be better to include strata, council, water fees& etc in Section 6> Label S (all other expenses) ?

 

Kindly Regards,

 

Emily Lu

Former Community Support

Replies 0

Hi @emilylv88 

 

Yes, you're correct - Section 6 > Label S is best suited for expenses incurred as a leasor of a property.