Owning Property · Koste Knowledge Base
What Are the Tax Implications of Renting Below Market Rate?
Quick Answer
Renting a property below market rate in Australia impacts your ability to claim tax deductions. The ATO requires that your rental property be genuinely available for rent at market rates to claim full deductions under Division 40 and Division 43 of ITAA 1997. Renting below market rate can limit these deductions, affecting your tax obligations.
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