ATO SET THEIR SIGHTS ON HOLIDAY RENTALS

The Australian Taxation Office is setting their sights on the large number of mistakes, errors and false claims made by rental property owners who use their own property for personal holidays.

"Australians enjoy the school holidays, they should be aware that ATO is going to focus on taxpayers who claim deductions for holiday homes that are not actually available for rent or only available to friends and family" Assistant Commissioner Kath Anderson said.

"You can only claim deductions for your holiday home if your property is genuinely available for rent. You cannot claim for times when you are using it foir your own personal holidays for letting friends or family stay rent free. It's not okay to expect everyone else to pay for your holiday."

Where something raises a red flag, it will be investigated.  Anderson said all property owners should be checking their claims before lodging their tax return, even if submitting through a tax agent.

Four rules to remember:

Advertise the property
Advertise the property to a wide audience. Advertising through a real-estate agent or an online site is not always enough evidence to demonstrate that a property is genuinely available for rent, and nor is only advertising locally or by word of mouth.

Ensure the property is in good condition
The property must be in a location and condition that will mean tenants will want to rent it. If your property is run-down or in a remote location, it may not be realistic to expect that it will appeal to anyone.

Charge market rates

Charging rent above market rates in order to deter tenants from applying could mean your property is considered to not be genuinely available for rent. Likewise, if you, your family or your friends stay for free, your property will not meet the criteria during that time period. If the property is being tenanted at a discount (mates rates) then the allowable deductions are limited to the amount of rent charged, not market rates.

Accept tenants
If you refuse to rent out your property to interested potential tenants without a good reason, this indicates that you may not have a genuine intention to make income from the property and could be reserving it for private use. In this case, your property wouldn’t meet the criteria for being genuinely available for rent.

One thing is for sure you shouldn't be do anything that you know is wrong and against the law - they maybe short staffed but that flat might just come up for you at anytime.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!