Join Australia's most dynamic and respected property investment community

Can you claim internet costs in an IP

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

  1. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    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?
     
  2. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    723
    Location:
    Sydney
    I provide Internet to tenants and claim it.

    Scott
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,143
    Location:
    Canberra and Sydney
    Can't see why you couldn't. Ask your accountant though.
     
  4. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

    Joined:
    24th Jun, 2015
    Posts:
    227
    Location:
    Philippines
    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
     
  5. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    Thanks for the responses. I was under the assumption you could.
     
  6. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    88
    Location:
    Sydney
    Would that mean other utility costs such as electricity and water would be claimable too?
     
  7. Tim86

    Tim86 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,085
    Location:
    Brisbane
    I claim all utility and internet costs at my share houses.
     
    FirstTimeBuyer likes this.
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,363
    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.