ATO focus on rental property deductions

The ATO is increasing its focus on rental property deductions.

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; and
• overstating deduction claims for the interest on loans taken out to purchase, renovate or maintain a rental property.

The ATO has released a series of short videos which explain the tax implications of buying, owning and selling a rental property. Please visit their website for further information.

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