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The new financial year has arrived! Clients have been wondering how COVID-19 will affect their rental deductions. If you have a rental property, below are the most important considerations for the current tax time:

  • As has always been the case, a bona-fide effort to ensure a property is available for rent must be made in order to claim any rental deductions;
  • If tenants have temporarily stopped or reduced their rent payments due to COVID-19 then you can still claim any rental expenses paid during this period in your tax return;
  • If you have deferred your investment property mortgage repayments as a result of COVID-19, interest that accumulates on the loan is still an expense incurred and can therefore be claimed as a deduction;
  • Any back-payments of rent or insurance proceeds for non- payments of rent are assessable income;
  • Remember to take note of any changes in private use for holiday homes or short-term rentals.

If you would like any further information on rental properties or any other tax or financial matters please contact us: 02 8338 1040 or [email protected]

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