The ATO has recently warned that it will be focusing on rental property deductions claimed in 2014/15 tax returns this year.
Particular attention will be given to excessive deductions claimed, especially for properties located in popular holiday destinations around Australia.
For a more comprehensive list of deductible expenses you can download the ATO’s Rental Properties publication (NAT 1729).
Remember, if you are renting out your holiday home you may not be able to claim 100% of your deductions. One method may be to claim a deduction equal to the proportion of days the property was actually rented at a commercial rate (i.e. 50 days/365 days = 13.7%). In some cases, where an active and bona fide effort has been made to rent a property at commercial rates during a period of vacancy, the vacancy period may also be taken into account.
Given this is an area of focus for the ATO we recommend that extra care be taken. If you are unsure whether an item is deductible or of the proportion that you can claim, we recommend you seek advice. Contact details for Tactica Partners can be found here.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
Mark has helped us immensely to understand our financial position, these guys are not just tax agents, they fully understand all aspects of business.
Daniel and his team at Tactica Partners have been taking care of me, my family and my company's accounting needs and I highly recommend him and the team. They've made getting tax done so easy and Daniel is an amazing accountant and extremely thorough and helpful.
…very professional, well prepared and organised. They have given us great business and personal tax advice, offered us good business insights, and more general personal planning advice too.
They continually deliver on all aspects of their service offering. …..we appreciate the substantial assistance they have provided in managing our bookkeeping function and providing proactive tax and accounting advice. We value their ongoing input in helping us strive for continual improvement on our reporting processes and delivery of timely information to our US office.
At last! An accountant who has "not" had a totally successful charisma bypass operation! Sensible and knowledgeable advice. Excellent!
Mark H and Helen have given us wonderful support for our family and business accounting for several years now. When I got my first invoice I grumbled……. not now. We can see the savings and feel the security for ourselves.