Investment Property COVID – 19 Q&A

Due to COVID 19, my tenants can’t pay rent, how do I go about it in my tax return?

You can still claim deductions in your tax return if your tenants can’t pay their rent under the lease agreement because their income has been affected by COVID-19 and:

  • you received less rental income as a result
  • you continue to incur normal expenses on the property.

You can also claim deductions if you reduced your tenants’ rent to allow them to stay in the property due to COVID-19 for commercial, arm’s-length reasons.

Is Investment loan interest deductible?

Interest is deductible on your loan:

  • if it continues to accumulate because it is an expense you have incurred
  • even if the bank defers the repayments.

How do I treat back-paid rent or insurance for lost income due to COVID – 19?

If you receive a back payment of rent or an insurance payment for lost rental income, you should declare this as assessable income in the tax year in which you received it.

Does Instant asset write-off apply for investment property?

If you’re a property investor, you cannot access the instant asset write-off deduction for the property.

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