IP "unavailable for period" claim

For decades I've been doing our own taxes with no issues via Mygov, but this is a first for me.

We sold our home and were planning to rent while our new house was being built ... and then Covid struck. Instead of renting a property ourselves, and leaving our holiday IP vacant with no income, we moved into the IP towards the end of April.

This means that there will be 60-something days that the IP was "unavailable" to rent during 2019/20 financial year.

Are the expenses for the entire year divided by 365 and then times'd back by 300 to end up with a claimable amount - reflecting the unavailability?

Reason I ask is that, being a holiday rental, there are rather large fees that haven't been occurring (such as booking.com and management fees) since we moved in - so feel it's not reflective to divide these rental specific costs into our "unavailable" period.

More than happy to pay the costs/mortgage for the period we occupy the place, as we should, but a little hmmmm if they use the above calculation

 

Not quite. Each expense needs to be looked at and the period of the bill is non-deductible from that date. It doesnt matter as much when its paid but what the period of the service relates to. Direct rental costs wont be adjusted at all as they relate to the period while rented. But lets say you paid the LL insurance in advance. then some part of that wont be deductible from the relvant date.

 

Awesome - as probably 98% of the expenses relate to the rentable period ... we haven't even had mortgage payments while her as put our sale funds in the offset and then promptly "deferred anything for 3 months"

 

Mortgage payments arent what you claim for tax. You claim the interest charged on the loan. Deferrals mean the lender arent asking you to repay but they are charging interest, esp if you have a offset.

Check the loan = debits are deductible. Credits are not.