Rental property deductions on ATO radar
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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