Holiday home or rental property? Understanding the tax difference

Deciding how to use a dwelling over the new year period and beyond may have tax implications down the road.

In this episode of The Smart Property Investment Show, host Grace Ormsby speaks with Australian Taxation Office assistant commissioner Robert Thomson to shed some light on the tax obligations that property owners need to know about to ensure their investment strategy is sound.

The holidays are a time to relax and unwind, but for property investors, figuring out how to use that time productively may lead some to consider leveraging their assets on the short-term market. According to Mr Thomson, investors should ensure they understand the difference between a holiday home and a rental property from a tax perspective when calculating the benefit of making that move.

The duo also discuss how the government agency is using data matching to ensure that investors – and all Australians – are getting their returns right, and share helpful resources, such as the ATO’s investor toolkit, to help out at tax time.

If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, Twitter and LinkedIn.

If you would like to get in touch with our team, email editor@smartpropertyinvestment.com.au for more insights, or hear your voice on the show by recording a question below.