Thursday, 16 Feb 2017
We all like to think that common sense plays a role when it comes to the everyday scenarios in our life’s that we should all know the answers to, and sometimes your so foregone we pretend we know it all because we don’t want to stick out like a soar thumb.
But the reality is theres a lot of us out there that don’t understand or aren’t aware of all the rules when it comes to the way the economy or tax system works and it’s nothing to be ashamed of as long as your educate yourself on the subject before it does you some harm later possibly even unknowingly.
Probably one of the most common issues that comes about is when it comes to having to pax tax for sharing economy related tasks, which is applicable to things such as an Air bnb listing. Reading that and feeling a bit shocked? I don’t have to put it in my tax return, do I? Don’t worry your not the only one thinking it!
I’m sure we’ve all had similar conversations with our clients and friends and of course the answer is yes, and you do need to keep some records. What’s more, putting a main residence on Airbnb will limit capital gains tax (CGT) exemption on that residence.
The Australian Taxation Office’s published view is that renting out a property via the sharing economy is no different to more traditional methods, and hence the income needs to go in your client’s tax return. The only exception the ATO sees is if the property is offered below market value.
Would you like to find out a bit more about this subject? Read the full article here:
http://www.accountantsdaily.com.au/columns/9901-clarifying-confusion-over-the-sharing-economy?utm_source=AccountantsDaily&utm_campaign=04_02_17&utm_medium=email&utm_content=1
