Renting a spare room in your main residence sounds like an easy way to make extra cash without the extra commitment. Whilst the advantages of this are attractive, the disadvantages also need to be considered.
We have been informed by the ATO that a 90% error rate was found within a random enquiry program for rental property claims. As a result, they are shifting their magnifying glass on rental properties and the types of claims made.
Non-business travel costs connected to residential rental properties are not deductible. The Australian Taxation Office has finalised its ruling on the rules that deny a deduction for travel expenditure incurred by investors in residential property.
When it comes to investment property making the right choice on the basis of investment fundamentals is the most important factor but understanding the tax consequences of your selection is also critically important.
Client Portal
