Rental property deductions on ATO radar

Rental property deductions

The ATO says it is increasing its focus on rental property deductions. It says common errors made by rental property owners include:

   Claiming rental deductions for properties not genuinely available for rent;
   Incorrectly claiming deductions for properties only available for rent part of the year such as a holiday home;
   Incorrectly claiming structural improvement costs as repairs when they are capital works deductions, such as re-modelling a bathroom or building a pergola;
   Overstating deduction claims for the interest on loans taken out to purchase, renovate or maintain a rental property.

The ATO has also released a series of short videos which explain the tax implications of buying, owning and selling a rental property.

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