FAQs on COVID-19 and residential rental property

May 21, 2020

The ATO has released frequently asked questions (FAQs) and other information to help tax practitioners and their clients understand their rental property obligations and what information clients need to provide in order to lodge correctly.

Many residential rental property owners have had their rental income affected by COVID-19. As a result, clients may ask about what they can claim this tax time. Tax practitioners and their rental property owner clients can check the FAQs to find out:

  • What expenses are claimable if tenants are not paying their rent under the lease agreement due to COVID-19?
  • Will deductions for rental property expenses stay the same if the property owner reduces the rent charged?
  • Must a back payment of rent or an amount of insurance received for lost rent be included as income?
  • Is a deduction on the interest charged on a rental property loan allowed if the bank defers repayments due to the COVID-19 outbreak?
  • Is the new instant asset write-off deduction available for residential rental property assets?
  • Impacts on short term rental properties.