The ATO has issued several statements confirming to both tax agents and the general public, that they intent to target holiday home rental properties this coming tax year.

 It has come to the ATO’s attention that taxpayers who rent out their holiday homes seasonally, or sometimes for just a few weeks per year, appear to be claiming an entire year’s worth of expenses and deductions incurred as a result of the holiday home ownership.

 The ATO has recently written to over 1000 holiday home owners who they believe may have incorrectly claimed expenses for the full year. These 1000 owners are spread across 500 postcodes around Australia.

 Further complicating the issue is the ‘sharing economy’ and the vast take up of Airbnb in Australia.

 If you are the recipient of one of these letters, or have questions regarding your holiday home rental income and claims eligibility, contact the team at GMD Chartered Accountants today to discuss the specifics of your particular situation.