By now you have probably heard that the Australian Taxation Office (ATO) is putting Airbnb owners ‘on notice.’
Airbnb has emailed owners warning them that their details have been shared with the ATO.
I suspect that there might be a few ‘Nervous Nellies’ out there – those who haven’t declared the income they have been receiving by letting out their property (or part thereof.)
I also suspect that if the income received hasn’t been declared then any allowable deductions will probably be missing from their tax return as well.
Remember, if you have been renting out an investment property on Airbnb, you might be entitled to claim depreciation as well.
This could equate to thousands of tax dollars saved per year and this may help offset any potential liability should the ATO come knocking.
Under the new laws, however, it does get a little tricky in cases where you rent out part of your home or stay in your holiday home several times a year.
It can still be a worthwhile exercise. If you find yourself in this situation, please give us a call for some free advice as to whether a depreciation schedule is suitable and worthwhile for you.