What is Rental Income?
You may think this is a silly question but it may include amounts you are not aware of.
Rental or other rental related income is the full amount or rent or associated payments that you receive or are entitled to when you rent out a property. These amounts can be paid to you or an agent. The amount of your share must be included in your tax return in full.
Some examples of rental related income would be:
- a rental bond that you are entitled to due to damage or default on rent that is payable.
- an insurance payout – If you receive an insurance payout to compensate for rent that is lost is rental income.
- Booking or letting fee – this must be included as rental income.
- Reimbursements or recoupments of deductible expenses may also need to be included as income.
- A government rebate for the purchase of a depreciating asset. For example solar hot water system or panels.
This list isn’t extensive and anything else you receive in relation to your rental property you should consult your accountant to see if it should be included as rental or other rental related income.