Our client, a company, began renting a granny flat as business premises from 14th August 2023, with the director being the owner of the property. However, the company did not pay any rent during the 2023-2024 financial year, but made three lump sum payments in the 2024-2025 financial year: $10,000 in September, $10,000 in October, and $8,600 in December 2024, which totals $550 per week over 52 weeks.
Can I claim the expenses incurred in the director’s personal tax return for the 2023-2024 financial year and report the income received in the 2024-2025 financial year? Or should I treat the expenses incurred in 2023-2024 as part of the cost base, given that deductions are limited to the amount of rent income received in the same year, which was zero?
133 views
1 replies