Can you claim internet costs in an IP

Discussion in 'Accounting & Tax' started by drg86, 8th Jul, 2015.

Join Australia's most dynamic and respected property investment community
  1. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    436
    Location:
    Forster NSW
    If you provide internet to your tenants can this be claimed as an expense?

    For example I have an IP that is rented as a share house, partially furnished and with internet included. Can I claim the cost of the modem and adsl monthly service fee?
     
    drg86, 8th Jul, 2015
    #1
  2. Depreciator

    Depreciator Well-Known Member

    Joined:
    15th Jun, 2015
    Posts:
    1,963
    Location:
    Sydney
    I provide Internet to tenants and claim it.

    Scott
     
    Depreciator, 8th Jul, 2015
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,980
    Location:
    Canberra, Brisbane and Sunshine Coast
    Can't see why you couldn't. Ask your accountant though.
     
    Jamie Moore, 8th Jul, 2015
    #3
  4. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Shared accommodation arrangement. First question is whether the income is assessable income and then whether any expenses are deductible.

    Taxation Ruling IT 2167 considers the consequences of different rental income producing situations and shared accommodation arrangements.

    http://law.ato.gov.au/atolaw/view.htm?DocID=ITR/IT2167/NAT/ATO/00001
     
    Mike A, 8th Jul, 2015
    #4
  5. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    436
    Location:
    Forster NSW
    Thanks for the responses. I was under the assumption you could.
     
    drg86, 8th Jul, 2015
    #5
  6. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    139
    Location:
    Sydney
    Would that mean other utility costs such as electricity and water would be claimable too?
     
    FirstTimeBuyer, 8th Jul, 2015
    #6
  7. Tim86

    Tim86 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,818
    Location:
    Brisbane
    I claim all utility and internet costs at my share houses.
     
    Tim86, 8th Jul, 2015
    #7
    FirstTimeBuyer likes this.
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,555
    Location:
    Sydney
    If the property owner includes utilities and other facilities in the service and incurs a cost then it should be deductible to the same extent.

    However if the owners incurred say a cost for his personal mobile phone and used shared data etc then some pro-rata adjustment is required. In NSW a separate meter must be used to charge clients directly for consumption of power / water otherwise the landlord incurs the costs and cannot recover anything. Still deductible.
     
    Paul@PAS, 10th Jul, 2015
    #8