Australian Tax Office targets holiday home rental deductions

Incorrectly claimed rental deductions, specifically ones relating to holiday homes, are being targeted for audit by the ATO. The focus on deductions being claimed will be based on information being shared between the ATO and holiday rental providers. The target will be over the next four years, however any consistent misuse of the rental deduction may bring a backdated audit process.

For Kothes Accounting clients who have holiday homes being claimed in a rental schedule, a clear understanding of the allowable deductions is pertinent. Visit the ATO website for a detailed article which includes several examples of what you can claim.

• If you have any questions about managing your holiday home from a tax and accounting perspective please give your Kothes accountant a call on (02) 6491 6491.