Announcements
Looking for information on the JobKeeper extension? Watch the video in our latest news article.

ATO Community

How much capital allowances can I claim on my Airbnb?

Highlighted

Initiate

Views 117

Replies 3

Hi,

 

We built our own home in 2017 and began renting it out on Airbnb in December 2018, the house is our principal private residence and we rent it out for aprox six weeks of the year, during which time we find alternative accomodation (friends/family/holidays).  It is my understanding that I can claim capital allowances on plant (furniture etc) that I have purchased as new since December 2018, adjusted for the % of the year that the house was available for rent.  My question relates to capital works expenditure - can I claim anything relating to the costs of building the house?

 

Thank you in advance

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Taxicorn

Replies 2

@joclark38 

 

Any claim for the building (capital works) would be based on cost x 2.5% x (6/52).

 

You do realize that you can not claim anything on Furniture etc even if it is new because the moment that you move back in again it becomes 'used' and therefore not eligible to be claimed.

 

3 REPLIES 3
Highlighted

Most helpful response

Taxicorn

Replies 2

@joclark38 

 

Any claim for the building (capital works) would be based on cost x 2.5% x (6/52).

 

You do realize that you can not claim anything on Furniture etc even if it is new because the moment that you move back in again it becomes 'used' and therefore not eligible to be claimed.

 

Highlighted

Initiate

Replies 1

Thank you very much.

 

So, if I have evidence of anything that we have spent on building the house and additional capital works, prior to and subsequent to Airbnb, I can claim that as a deduction (at 2.5% x 6/52), is that correct?  Are there any implications for my CGT liability if I claim this capital works deduction for the cost of the build?  Or will the cost base for my CGT  when we sell the house still be based on the value of the house (and land) at the time I started Airbnb?

 

Thank you in advance

Highlighted

Taxicorn

Replies 0

@joclark38 

 

There will always be a Capital Gain/Loss on the building as you have used it to earn income.

 

The amount of capital works that you can claim will be at 2.5% for the period it was rented.

 

I would be very careful in determining exactly what you can claim and that is where a Quantity Survey comes in handy, their fee is deductible.

 

The cost base is when you first started to rent it out plus of course you subtract from it any amount claimed for Capital works.