ATO FOCUSING ON HOLIDAY HOMES – ARE YOU AT RISK?

The ATO is looking closely at rental property owners 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.

A reminder to taxpayers that deductions can only be claimed for the rental property to the extent the property is genuinely rented out, and if rented out to friends or families at ‘mates rates’, the deduction can only be claimed up to the amount of income received.

The ATO has emphasised the importance of keeping accurate records of income and expenses, evidence of the property being rented or genuinely available for rent at market rates, and of who stayed at the holiday home and when, including the time when the property is used for personal purposes.

If you would like to discuss this matter further, please contact our office.