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Re: Can i claim GST incurred on investment property expenses in my BAS

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Hi There

 

Firstly I am a sole trader Dentist. I regularly file my BAS and there is usually always a big component of GST which I have incurred as part of my regular expenses (mainly clinic fees on which the clinic charges GST (as part of the Service and facilities agreement)). I am then able to claim this GST component back from ATO.

 

In regards to my investment property - 

Say Gross Rental Income for the quarter was = $3000

For different types of real estate agent fees (like advertising, letting fee, lease preparation etc), total cost = $1100. This cost included a GST component of $100.

There are other expenses as well (such as building insurance) on which I have incurred GST as well. Say the GST amount is $50. 

 

Question 1 - Can I claim this $100 + $50 GST components in my BAS ?

 

Then taking the discussion even further.

Here it must be noted that I purchased the investment property in Jan this year only (so I have had the property for less than 12 months).

 

In the renovation of the investment property, I spent $77000. This also included a GST component of $7000.

 

Question 2 - Can I claim this $7000 GST component in my BAS as well ?

 

Thanks in advance for your inputs ?

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Devotee Registered Tax Practitioner

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@pra5hant 

 

GST is charged on Rent for a commercial property where the owner is required to register for GST.

 

Rent for Residential premises does not include GST.

 

If your investment property is Residential, you cannot claim GST on ongoing or Renovation costs.

The GST becomes part of the deductible cost. 

 

Duncan

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Most helpful response

Devotee Registered Tax Practitioner

Replies 1

@pra5hant 

 

GST is charged on Rent for a commercial property where the owner is required to register for GST.

 

Rent for Residential premises does not include GST.

 

If your investment property is Residential, you cannot claim GST on ongoing or Renovation costs.

The GST becomes part of the deductible cost. 

 

Duncan

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Thanks for the clarification Duncan