I have been searching here and elsewhere to try to resolve a question of percentage calculations for expenses for airbnb rentals (it is a flat adjoining main house on same land title: I refuse to call it a ‘granny flat’ as it is a demeaning term). I know claims are dependent on total time of occupancy by the airbnb renters and share of total space used. But here’s the thing: one quarter of total house and land space is used by renters, but an average of one third of energy, wifi and so on is used during the rental periods. So, questions:
1/ do we claim, say, one quarter of council rates and home and contents insurance, and contents depreciation, pro rata for occupancy period, but one third of the rest (i.e. ongoing consumption items: water, electricity, gas, wifi, streaming services and so on)?
2/ We had to undertake major repairs to the bathroom, first as a stop gap to keep it functional and safe pending full renovation, then full renovation. We also had an airconditioning unit installed at the same time. The flat is mostly used by airbnb tenants and occasionally by friends. So, how do we depreciate the renovation? We ended up spending close to $30,000 due to the fact that the bathroom floor had collapsed and plumbing had been damaged as well.
3/ More generally, how do we depreciate furniture, bedding, towels etc, used only in the flat? Is it like work expenses where we write off small items immediately and depreciate larger ones?
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