Hi All
Question about airbnb property being available for rent vs actually rented out.
Looking to do some airbnb for half the home - e.g 50% of floor plan as I live by myself and it is a 3 bdr house.
The question I wanted to ask is - if I state it is available for rent for the whole year (so advertised as available for the whole 12 months) but say only 6months of it was actually airbnb out i.e only 6months of the year people rented it (the other 6months was empty).
Can I claim expenses (interest on loan etc)- on the whole 12months it was available for rent or only for the 6months it was actually rented out?
*Did some digging around but it seems only this website mentions it:
https://www.kingscoin.com.au/how-to-property-invest/6-of-the…
When the property is vacant, can I still claim expenses?
The answer depends on whether you rent your whole property or part of your property.
Deductions when renting your whole short term rental property
Where you rent out a whole property, expenses are only deductible where an area of the house is either actually rented out, or available for rent.
For example, where a property is available for rent for 180 days a year then only the portion of rental expenses that were incurred over that 180-day period are deductible.
Note, it is not a requirement that the property is actually rented for the (in our example) 180 day period for rental expense deductions to be claimed. The property simply needs to be available for rent. Therefore, even if no guests stayed on the property during the 180 day vacancy period, if the property is advertised on Airbnb as vacant and available for rent, you can still claim deductions for the 180 day period.
Deductions when renting part of a short term rental property
Where you rent out only part of the property (such as a bedroom with access to shared areas in the property where you live), you can only claim expenses for the period the room is actually rented.
So, if you only rented the room for two weeks in a year, you can only claim the proportion of expenses for the rented part of the property which related to that two week period. This is to stop you claiming deductions for periods where the room might be used for private or domestic purposes, even though it was notionally available for rent*
TDLR - Airbnb only half the house- being rented out as available for the whole 12 months but actually rented out 6 months. Can i claim interest losses etc on the whole 12 months or just the 6 months? The above only suggests 6 months- but any thoughts?
Cheers!
Engage an accountant. Get the correct advice. Do it once. Do it properly.