Today, the short-term rental market is becoming more and more popular and fashionable. Yes, in many cases, short-term leases have a clear advantage over long-term leases in terms of return on investment and flexibility.
However, many short-term rental homeowners do not declare strictly in accordance with the tax law. You should know that in fiscal year 2016, about 2.1 million people had already declared a rent income of A $42 billion, which means that the rental market is an important part of the Australian economy, and naturally, the Australian Taxation Office (ATO) has also placed it at the top of the list. I won't let it go.
The Australian Inland Revenue Service recently launched a data-matching program to identify taxpayers earning revenue from short-term leases, who would be audited by the ATO for any taxpayer who did not report under the tax code.
ATO will review information from about 190000 people on the online sharing platform and match the information in the tax returns to identify taxpayers who have missed rental income and overstated deductions.
So what's the IRS going to get?
Income from each listing
Rent date enquiry
Reservation rate
Price quoted per night
In addition to focusing on underreporting, ATO will also use the program to identify homeowners who have no intention of renting, but simply hang their homes online.
Why would ATO check this? You know, some people say they've put their houses online and are deliberately renting them out, so that they can fairly deduct the costs of the house in their tax returns. And the rent declaration? Very few, or even none, because they have no intention of renting, and will not accept applications from tenants who want to rent their homes online.
In addition, only one set of self-housing friends should also pay attention, if you only travel on business or travel, put your only self-housing on the short rent platform short rent, earn a little pocket money, you also want to declare. I can't say it's my hobby!
And, as a result of this behavior, a few years later, if you decide to sell the only self-housing set, you will still have capital gains tax to calculate. How much tax should be paid, according to your holding period, how many days is in the short-term rental platform is rental to calculate, can not enjoy 100% of the capital gains tax self-housing.
Specific to everyone, of course, specific analysis, you need to contact the accountant, do one-on-one consultation.
Having said so much, how do you deal with ATO easily as a taxpayer? Here I suggest that you:
Airbnb tax playbook? Declare any income, even if it is only a one-time one-off income, derived from the rental of a whole or part of a house; To declare tax credits only during the rental period of the house or during the period when the rental is truly available;
If the self-housing will be rented, only the actual rental period for tax deduction declaration;
? If the property is rented at a price lower than the market value, the amount of tax deduction shall not exceed the rental income obtained;
Keep complete and relevant records.