Private ruling: Rental property expenses
Date of advice: 27 September 2018
Published: November 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for a portion of the rental expenses incurred for your share of a holiday home rental property? | A1: Yes. You are required to apportion your expenses to exclude the periods the holiday home rental property was used for private purposes and not made available for rent. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You own a holiday home rental property (the property). You acquired the property jointly with your partner for the purpose of producing assessable income. The property was chosen as it is considered to be a holiday area for visitors. There are many other rental holiday homes in this location. The property is advertised and used for rental purposes for a percentage of the year, including the peak holiday and school holiday periods, but excluding a period of time where it was not made available for rent and was used for private and maintenance purposes. The property is rented at commercial rates for both peak and non-peak periods. You have earned assessable income from renting the property during the 20XX-XX financial year. You have appointed a commercial agent to manage all the bookings for the property, and advertise the property through the agent’s commercial websites. You have incurred rental expenses and would like to apportion these expenses as per the time the property is used for income producing purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1