water rates

Tax deduction for water rates on rental property.

You can claim water rates as a rental property deduction. Where a property is rented only for a portion of the year, the annual cost must be apportioned.

Often is a rental property is managed, the water charges may be paid for by the property management agency, and partially or fully reimbursed by the tenant. In this case the receipt from the tenant needs to be declared as rental income (under other income) and the payment of the water charges needs to be claimed as a rental property deduction.