ATO waves a Red flag on holiday rentals
The ATO has reminded taxpayers that it is paying attention to rental properties in popular holiday destinations.
Rental property owners should follow a few simple rules ……
Declare your Rental Income.
Only claim deductions for the period the property was available for rent.
Keep accurate records and rent at market rates.
Advertise to maximise exposure to potential tenants, and keep the property clean & maintained in a reasonable condition.
Investors who purchase plant & equipment for their residential INVESTMENT PROPERTY after 9 May, 2017 will be able to claim a deduction over the effective life of the asset.
Subsequent Owners will be unable to claim a deduction for plant & equipment purchased by a previous owner – such as dishwashers, carpets & ceiling fans.
The acquisition of existing plant & equipment will be reflected in the Cost Base for Capital Gains Tax purposes for subsequent investors.
From 1 July, 2017 the ATO will disallow deductions for travel expenses related to inspecting, maintaining or collecting rent for a Rental property. This measure will not prevent Investors from claiming a deduction for costs incurred in engaging third parties, such as real estate agents, for property management services.
To speak to one of our professional team please call (02) 6684 2502 or visit our website www.wdnicholls.com.au to learn more about what we do and how we can help you reach higher.