Tax tips for landlords
Do you have a property which had the rents frozen or reduced due to COVID?
1. You will have to pay tax on the actual rent received and not what was on the lease agreement.
2. “Catch up’ payments” will be taxable in the year they are received.
3. Full rental deductions remain eligible even though the rent has reduced.
4. Your mortgage may have frozen, but the interest keeps accruing on the loan. You will be able to claim the interest as a deduction.
5. Deductions from short term rental properties such as Airbnb can continue to be claimed in the same ratio as you did prior to COVID even though they may not have been rented out. The condition is that the accommodation remained available for rent.
6. Rental loss if not absorbed can be carried forward for future income years.