There are instances where you might have to divide up rental expenses. For example, if you, your friends, or your relatives use your holiday home without paying for it for part of the year, you cannot claim deductions for the expenses incurred during those times. Renting your property to family or friends for less than the market rate can lead the Australian Taxation Office (ATO) to consider it a ‘private’ arrangement. In such cases, you may only be allowed to claim deductions up to the amount of rent received, preventing you from claiming enough deductions to result in a tax loss.
Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
