What deductions can you claim for an Airbnb host?

It is getting more and more popular for real estate property investors to get involved for Airbnb market. This is because the significant rental return as well as its flexibility compared to the traditional leasing activities.

Now, the biggest question for investors is: what kind of deductions (to what extent) can you actually claim to achieve the best possible tax efficiency?

Generally, the types of expenses that you can claim should be the same as when you have a traditional investment property, including:

– all commission or fees charged by online platform or offline agent/administrator;

– Rates & Taxes;

– Interests paid on property loans;

– Utility consumption;

– Insurance, registration and subscriptions; and

– Ongoing cleaning and maintenance, etc.

In addition, it is very common practice that investors may personally use Airbnb property for a couple of days or weeks in the financial year (holiday home). If that is what you prefer, when claiming outgoings for your Airbnb property, you must limit the claims to the rental periods or at least, the property status should be “Available For Rent” for the claiming periods. In other words, you must exclude the periods for private use.

The eligibility can be very complicated and critical. The investors will be “smart” to make appropriate arrangements in advance and keep relevant evidence to support their claims. Therefore, we do encourage investors to seek professional advice to avoid any potential tax and audit risks.

Having said that, if you have any queries in relation to the eligibility for claiming the deductions?

Time to Talk to us?

If you have any accounting and tax related queries or need a registered tax agent to handle your matters, please do not hesitate to talk to our Client Service Manager, Isura on (03) 83190907 or 0450833803. Alternatively, just drop us a quick message with your details to info@wedotax.com.au and we will get back to you as soon as we can. Talk soon!