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Tax considerations renting PPOR on AirBNB/Stayz etc

Discussion in 'Accounting & Tax' started by WellnessWarrior, 8th Dec, 2015.

  1. WellnessWarrior

    WellnessWarrior Member

    Joined:
    19th Jun, 2015
    Posts:
    12
    Location:
    Pyrmont Sydney
    Hi,
    We are looking at a new PPOR and the property currently produces around $50,000 p.a when rented for some weekends throughout the year. What factors do I need to consider that are advantageous or disadvantagous in regards to my PPOR also producing an income.... We would have a loan against this property. Does part of that become claimable?

    TIA :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
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    8,975
    Location:
    Sydney
    I think I wrote a tax tip on this a few weeks ago. Have a look under the tax section.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,374
    Location:
    Sydney
    It wouldn't be a principal place of residence if its rented. It would either be fully or partially exempt depending on the % of the property subject to ABnB. The interest and other ownership outgoings deductible to the % it produces income.

    Land tax issue
    Income tax issue
    CGT issue

    Airbnb is just a different way of managing tenancies. Doesn't change any deductions as such v's other ways of managing rental (ie agent etc). It may actually give support for the available for rent issue.

    I have some clients who choose ABnb for the higher yield but the trade off is higher expenses for cleaning, linen, consumable items etc.