COVID-19: change in tax outcomes for residential rental properties

The ATO has released guidance on tax issues for residential rental properties arising from COVID 19. 

The guidance covers: 

• claiming deductions if less rental income has been received while normal expenses continue  to be incurred 

• the proportion of expenses that can be claimed as a deduction if the property was used  differently in the period it was affected by COVID-19 

• claiming deductions for periods when a property is vacant 

• interest deductibility on deferred loan repayments 

• assessability of back-paid rent or insurance for lost income 

From CAP TAX News – 06 August 2020 / Edition 30