Advertising your property on Airbnb or other digital platforms can be a good way to earn some extra dollars but do you know your tax obligations?
The ATO is having a crack-down on the sharing economy and will be carefully checking the details of people earning money from short-term rental of their property on sites such as Airbnb against their declared income. Those that have failed to declare income may expect a warning letter from the ATO reminding them of their obligations with the aim of ensuring everyone is paying the right amount of tax. Those who receive such a letter will have to amend their tax return to include all income. If this is not done, an audit may follow.
What you need to know:
- You need to keep records of all income earned and declare it on your income tax return
- Keep records of all expenses you can claim as deductions
- You don’t need to pay GST on amounts of residential rent you earn
Don’t worry if you are unsure what to do next. Contact one of our Tax Store specialists for advice.
Tax Store Accountants North Ryde.