For many property owners, a holiday home serves two purposes. It's an investment that generates rental income, but it's also somewhere to enjoy with family and friends throughout the year.
Unfortunately, a new ATO interpretation may make that balancing act more difficult.
While the underlying legislation isn't new, the ATO has recently released guidance that changes how it approaches holiday homes and short-term rental properties. As a result, some owners who have historically claimed deductions may find certain costs are no longer deductible.
If you own a holiday home or short-term rental property and aren't sure how these changes may affect you, speak with the SBS
team before lodging your tax return. A proactive review now could help you understand your options, strengthen your record keeping and
avoid unexpected surprises down the track.
How you use your holiday home could affect the deductions you're entitled to claim. Review your position before tax time.
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