
Since Covid people have opted to work from home turning a proportion of their homes into office space as we know Stuart Robert did when he claimed expenses for his Fax copier among other things. Are homeowners being charged CGT on that proportion of their homes claimed as an investment? Will Stuart Robert be made to pay Capital Gains on the sale of his house?
What about renters can they claim a proportion of their rent, gas, and electricity as tax-deductible expenses or should they invoice their place of work and declare it as added income?
Despite the housing crisis, despite the rentals crisis, holiday house landlords claim year-round tax breaks on short-term rentals often vacant. In a letter to Tax Commissioner Chris Jordan, Tim Evans asks why.
This in part has resulted from the common practice among owners of Airbnb and short-term/holiday rental properties claiming up to 100% of annual expenses on these properties simply because they have made the properties “available to rent”, even though they may only be rented out for a fraction of the year.
Source: Airbnb tax rort: why is the government subsidising holiday landlords? – Michael West