NG and renting only few weeks short term

Discussion in 'Accounting & Tax' started by Deck, 17th Jul, 2017.

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  1. Deck

    Deck Well-Known Member

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    Hi guys,

    I am wondering if I buy a small apt close to my house for my parents when they visit (only 200k and they like their independence), can I NG the full year of interest even if I rent it only few weeks as short term (not to my parents of course) ?

    Thank you
     
    Deck, 17th Jul, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no
     
    Terry_w, 17th Jul, 2017
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  3. HUGH72

    HUGH72 Well-Known Member

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    No, only for the time it is actually available for rent.
     
    HUGH72, 17th Jul, 2017
    #3
  4. Deck

    Deck Well-Known Member

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    And if I put it for rent without renting it (like slightly over market price or not suitable tenants ) ?
    Thank you
     
    Deck, 17th Jul, 2017
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It has to be genuinely available for rent. The ATO are aware of these strategies
     
    Terry_w, 17th Jul, 2017
    #5
  6. Hamish Blair

    Hamish Blair Well-Known Member

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    Same deal as a holiday house you rent out to holiday makers. If you use it for part of the year then interest not deductible (AFAIK).
     
    Hamish Blair, 18th Jul, 2017
    #6
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    All arrangements where there is a non-commercial rent. non-arms length issues and not being genuinely available requires adjustment to the deductions claimed

    Expenses you can claim

    ATO are well aware of the issues and its something they look at when they randomly or target a taxpayer. Holidays lets etc are often checked. You may be surprised how many people tell their PMthat Dec 20 - Jan 16th its unavailable and the PM marks it in their records or even on the rental statements. Laundry charges and linen changeover , cleaning etc when there is no tenant are often good indicators too
     
    Paul@PAS, 19th Jul, 2017
    #7
  8. Ed Barton

    Ed Barton Well-Known Member

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    It was the only time I had available to paint the joint.

    Are my movie world tickets deductible?
     
    Ed Barton, 19th Jul, 2017
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Dreamworld tickets should be a CGT event. 100% lost value.
     
    Paul@PAS, 20th Jul, 2017
    #9