Do you own a holiday home? The ATO is focussing closely on rental property owners who may be incorrectly or falsely claiming deductions for properties that are not genuinely available for rent, or that are used by taxpayers as a personal holiday home.
The ATO has reminded taxpayers that deductions can only be claimed for the rental property to the extent the property is genuinely rented out. If the property is rented out to friends or family at “mates rates” then the deductions can only be claimed up to the amount of the income received.
It is imperative that taxpayers keep accurate records of income and expenses, evidence of the property being rented or genuinely available for rent at market rates and who stayed at the holiday home and the dates. This information must include any time the property is used for personal purposes.
If you need assistance or further information please contact our office or refer to ATO Website
