ATO focus on rental property deductions

The ATO has announced that it will focus on excessive interest expense claims and incorrect apportionment of rental income and expenses between rental property owners. It will also look at holiday homes that are not genuinely available for rent and incorrect claims for newly purchased rental properties.

The ATO has reminded taxpayers when claiming deductions for their rental property to include all the rental income and make sure that their property was genuinely available for rent when the expense was incurred. Taxpayers must also make sure to apportion any deductions to take any private use into account, and must have records for the claims they make.