Rent paid for property Y is considered a private expense and is not a deductible expense from the rent received from property X. In September 2019, the Hitchmans` tenants moved and owed six weeks` rent. The Hitchmans kept the loan money and took the tenants to court to terminate the lease and recover the balance of the rent. If the expenses are not deductible by other means of repair, a deduction may be available as an environmental protection activity. Peter also paid $12,000 in stamp duty on the transfer of title deed. He cannot claim a tax deduction for these expenses, but he will be part of the cost base of the property for CGT purposes when he sells the property. Repair costs you make on the property may be deductible. Generally speaking, however, repairs must relate directly to wear and tear or any other damage caused by the rental of the property. Payments you make to business management funds and general cash backs are considered payments for the provision of services by the entity and you can claim a deduction for these withdrawals at the time of withdrawals. However, if the organization asks you to make payments to a trust fund to pay for certain investments, these deductions are not deductible. The Hitchmans bought a leased property for 170,000 $US in July 2019. They also paid a survey fee of 350 $US and a stamp duty of US$750 on the transfer of the land. None of these expenses are deductible from the Hitchmans` rental income..
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