Accountant Allied Health Annuity Apps Asic Asset Finance Asset Planning Asset Protection Asset Protection Strategies Assets and Risks Ato Auction Audit Insurance Australian House Market Report Baby Bonus Binding Death Benefit Nominations Binding Financial Agreement Binding Financial Agreements Body Corporate Bonds Borrowing Brexit Budget Budgeting Business Business Tax Deduction Capital Gains Tax Capital Gains Tax: Will Capital Protection Cgt Checklists Commercial Loans Commercial Property Concessional Superannuation Contribution Corporate Trustee Darren Foster Debt Debtors Deceased Estate Depreciation Economic Update Economy Estate Planning Executor Fbt Federal Budget Federal Election Finance Finances Financial Plan Franking Credits Gst Holiday House Hybrid Unit Trust Individual Ownership Insurance Insurance In Super Interest Rates Investment Investment Loan Investment Loans Investment Property Investments Joint Ownership Ken Burk Land Tax Lending Life Insurance Linda Hamilton Loan Repayments Loans Lvr Margin Loans Margin Scheme Market Update Medical Expenses Mortgage Mortgage Broker Mortgage Broking Mygov Negative Gearing Offset Account Paris Financial Pat Mannix Payg Variation Pension Practice Valuations Private Wealth Property Property Development Rebecca Mackie Redraw Facility Refinance Renovating Research & Development Retirement Retirement Planning Retirement Savings Salary Sacrifice Scams Self Managed Superannuation Self Managed Superannuation Fund Seminar Shares Small Business Smsf Smsf Borrowing Smsf Property Smsf Self Managed Superannuation Fund Steve Golding Steve Wildes Strategic Business Structuring Structures Subdividing Property Succession Plan Superannuation Superannuation Fund Tanya Hofbauer Tax Tax Benefits for Super Tax Concession Tax Deduction Tax Investment Property Tax Offset Tax Planning Tax Savings Tax-Free Tenants in Common Tessa Testamentary Trusts Transition to Retirement Trust Trusts Ttr Will

Airbnb Renters To Be Under Tax Office Scrutiny

Airbnb Renters To Be Under Tax Office Scrutiny

Similarly to last year, users of the highly popular Airbnb platform will struggle to get away with illegal deductions on their 18/19 tax return.

The ATO have announced that they will make a significant effort to track down nearly $8.7 billion in expected tax revenue.

By making use of modern data-matching technology, the ATO can receive information regarding the use of homes being rented online. They can compare your property against others in the area to ensure you are within a similar tax bracket. If not, you will become a target for inquiry.

In particular, the ATO believe there will be a number of incorrect claims during periods of no tenancy. In order to claim any deductions, tax payers must have evidence that their home was available in these periods and not used for private purposes.

There are a number of tax laws and regulations surrounding online rental deductions. Some of the major notes to remember include:

  • The income you receive is definitely taxable, contrary to what you might have heard.
  • Some expenses can be claimed in full, like the cleaning, depreciation on furniture used, Airbnb fees etc.
  • Other expenses (interest, rates, electricity, etc) can be claimed but must be apportioned based on how much of the house has been rented and how much of the house is to be shared.
  • The expenses also need to be apportioned according to the amount of days the extra rooms are genuinely available for rent.
  • CGT is applicable on the small portion of time that the whole home was not your principle place of residence.

The laws are alike for other online rental platforms, such as Stayz.

To ensure you are receiving a great tax return, without making illegal deductions, you should turn to a property tax specialist for assistance.