The ATO is writing to owners of houses and units in popular holiday areas reminding them of what can and cannot be claimed as a tax deduction for their holiday properties.
This follows several audits where property owners were found to be claiming expenses incorrectly, resulting in substantial deductions being disallowed.
Common ‘mistakes’ were:
- Renting out a property to friends and family at a reduced rate and yet still claiming the regular deduction
- Claiming advertisement costs, yet only ‘advertising’ through word of mouth through family and friends
- Husbands and wives not dividing up the deductions for the share investment equally
- Claiming maintenance costs shortly after the property is purchased
For further information, click here.
Still not sure if you’re able to claim it? Please contact our office.