Item 21 - Income from rental properties

see Item 21 - Rent on the ATO website for further information.

Complete the Rental schedule if the taxpayer owned an Australian property and earned rental income or held the property available for rent for all or part of the financial year.

Rental income and deductions amounts are filled into the labels at item 21 when you close the Rental Schedule (ren). The ren has more columns and fields and the distributing function. When completed it is lodged as the ATO Rental schedule (B).

The ren also provides for the private use % to be deducted and for the net rental income/loss to be shared. For information on editing expenses where one owner expends more than another; on sharing rental income/loss and on applying any private use percentage, refer to Rental Schedules (B and BR).

Depreciation expenses integrate to the rental schedule as do Capital building allowance amounts and motor vehicle expenses from the mve. See Depreciation worksheet (d) and Motor vehicle worksheet (mve).

Multiple Rental Schedules may be attached to the return.

Do not include rental Income from foreign owned properties. This should be included at item 20, label R instead. Use the Foreign Rental Property Worksheet (ref) available at label R, click the label or click [Alt+S].

Where the property is used partly for private purposes, expenses must be apportioned accordingly.

Co-ownership

If the title deed shows that the taxpayer is a part owner of the property, only the taxpayer's share of the rent and expenses should be declared in the return and each co-owner must complete a rental schedule to be lodged with their income tax return.

CCH References

10-500 Rents and premiums

16-650 Landlord's or lessor’s expenses