The ATO has thrown some more sand in the gears of Australia’s landlord army, announcing a crack-down on holiday home owners that claim full-year deductions. From The AFR:
The ATO is stepping up its focus on rental property owners, in particular holiday home owners, and will soon write to 1000 owners who may have incorrectly claimed deductions for initial repairs to recently acquired rental properties.
The ATO told Fairfax Media that last year it had sent out letters to 500 postcodes across Australia, reminding people to only claim the deductions – including maintenance and mortgage interest – they are entitled to, for the periods the holiday home was rented out or was genuinely available for rent…
A key concern in regard to holiday home owners, is when people make claims for expenses when the property was not genuinely available for rent.
I’ve heard several stories of holiday home owners using their homes a couple of times a year but offering them for rent at other times at rates well above fair market value. This way, they can claim that their home was “available for rent”, thus allowing them to claim a rental deduction, whilst never actually having to rent the home out.
Go get em, ATO.
