With an offset account Rachel can claim interest on the full loan amount as she only withdrew the savings from a bank account (albeit linked to her mortgage). As we can only claim interest on money used for investment purposes the interest on the amount Rachel ‘redrew’ for her new home is not tax deductible meaning difference in deductions against her new rental property of $9,000.
When someone inherits a dwelling there are some special rules contained within the main residence exemption provisions that can provide a full exemption if certain conditions are met. If the conditions are not met, the beneficiary might face a nasty capital gains tax (CGT) bill for their good fortune.
Travel expenses relating to inspecting, maintaining, or collecting rent for a residential rental property cannot be claimed as deductions by investors. The travel expenditure is also not recognised in the cost base of the property for CGT purposes.
Australia has seen a huge surge in property owners renting their house or rooms out via the likes of the hugely popular Airbnb app. As a result, the ATO are now going to gain access to data match these online platforms.