Australian Tax Obligations As An EzyStayz Host
July in Australia means it’s tax time and if you’re renting out your property through online platforms such as EzyStayz, you’ll need to take this income into consideration when completing your tax return. It’s important that you remember your tax obligations when earning money through holiday rental sites and keep track of what your contributions may be throughout the year, rather than just treating all the money you earn as additional income.
1. Keeping Records
It’s important that you keep records of anything and everything you do to the room or property, just as you would with a regular tenant. Come tax time, having receipts and notes will ensure you can claim the expenses, so it’s a good habit to get into.
2. What Can You Claim?
You can claim expenses and depreciation for the property or the area of your house that was available for rent. This includes accurately-calculated proportions of internet costs, upkeep and repairs, as well as depreciation in the cost of furnishings and appliances. It can also be applied to water, power and council rates, together with interest on your mortgage, but make sure you keep a record of when the property or room was being rented to claim expenses.
3. Be Honest About What You Earn
If you’re renting out your property or even just a room in your home, it’s on the internet and easily visible to the Australian Taxation Office. Even if you’re not earning a significant income from the listing, you need to keep records and be honest about the money it’s generating come tax time. Remember that if you under-claim your rental income or make false declarations, it can lead to back taxes owing, as well as fines and interest charges.
So before renting out your property, ensure you understand your tax responsibilities as an EzyStayz host and save any expense receipts and notes for when it’s time to do your tax return. Don’t under-claim your EzyStayz income or you may run the risk of fines from the ATO and if you’re not sure what you should be claiming, talk to your tax agent to get the most out of your EzyStayz tax deductions.