64 Jolimont Street, East Melbourne VIC 3002

Accounting News

Alert - Online Share Accommodation

Home-owners should consider the wider taxation implications of renting the family home before taking a short-term benefit.

 

 

The online platform (e.g. AirBnb) that facilitates the rental of your residence also provides much of that information to the Australian Taxation Office (ATO).  Thereafter, it is a simple matter from them to ensure all taxpayers disclose this rental income in their income tax return.

It is unlikely that many costs of the property during that period will be deductible.

However, a much more significant concern is the loss of full main residence exemption from Capital Gains Tax when the family home is sold.  An apportionment for the “business use” of the property will mean some of the “tax-free” gain has become taxable.

How accurate are your records (compared to the ATO who have the on-line platform records)?  How complex has it become?

Most taxpayers will forget the details but be surprised by an amended assessment without enough information to dispute ATO assessment.

 

 

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W Marshall & Associates 64 Jolimont Street, East Melbourne VIC 3002

Important: This is not advice. Clients should not act solely on the basis of the material contained in this Commentary. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before taking any action. The Commentary is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.